Panama Canal Transits Surge After Drought Recovery

Transits through the Panama Canal rebounded sharply in the first four months of the canal’s fiscal year 2025 (October 2024–January 2025), rising 25.04% compared to the same period a year earlier when drought restrictions had limited traffic. A total of 4,042 vessels passed through the waterway, an increase of 809 transits year-over-year. Of these, 72.44% (2,928 transits) were through the Panamax locks, while 27.56% (1,114 transits) passed through the Neopanamax locks.

Panama Canal Deputy Administrator Ilya Espino de Marotta stated that daily transits have now returned to 36, following water management measures implemented between July 2023 and May 2024. At the lowest point in late 2023, daily transits had dropped to 22, significantly impacting operations. The easing of restrictions has led to substantial increases across several shipping segments. Container vessel transits rose by 6.99% to 979, chemical tankers increased by 20.65% to 748, bulk carriers surged by 86.15% to 726, and gas carriers saw a 41.88% jump to 647. Vehicle carriers and refrigerated vessels also saw notable growth, increasing by 17.47% and 27.6%, respectively. However, LNG carrier transits dropped from 72 to just 13, while passenger vessel transits saw a 5.73% decline to 11.

While transit numbers continue to recover, the canal authority is moving ahead with a new reservoir project on the Indio River, following a census of the communities in the affected area. Additionally, efforts are being made to attract shipping lines that had diverted from the Panama Canal due to past restrictions. The canal has also come under geopolitical scrutiny following claims by U.S. President Donald Trump that it is under Chinese control. These concerns stem from Hong Kong-based Hutchison Ports’ concessions in Balboa (Pacific side) and Cristobal (Atlantic side). A scheduled call between President Trump and Panama’s President José Raúl Mulino to discuss the issue was postponed and remains unscheduled.