The Panama Canal reported higher transit volumes and cargo tonnage during the third quarter of fiscal year 2026 (October 2025\u2013June 2026), while continuing to adapt its operations to meet global shipping demand in anticipation of a severe El Ni\u00f1o event.<\/p>\n
The Panama Canal provided a market update during a conference call hosted by Anne Milne, managing director of emerging markets corporate research at Bank of America Merrill Lynch, which highlighted its operational performance and long-term strategic initiatives.<\/p>\n
The call featured Panama Canal Administrator Dr. Ricaurte V\u00e1squez Morales, Deputy Administrator, Chief Sustainability Officer, and Administrator-designate Ilya Espino de Marotta, as well as Vice President of Finance V\u00edctor Vial.<\/p>\n
Operational Performance<\/strong><\/p>\n Administrator V\u00e1squez highlighted the Panama Canal’s strong operational performance.<\/p>\n As of June 30, FY2026, the Panama Canal averaged 35 daily transits, with a total of 10,726 transits during the current fiscal year (October\u2013June), a 5.2% increase from the 10,191 transits recorded during the same period in FY2025.<\/p>\n During the same period, the canal handled 389.96 million Panama Canal Universal Measurement System (PC\/UMS) tons, up 7.2% from 363.66 million PC\/UMS tons during the corresponding period of the previous fiscal year.<\/p>\n Additionally, Dr. V\u00e1squez noted that container ships and liquefied petroleum gas (LPG) carriers continue to drive this growth.<\/p>\n “Our strategic initiatives continue to advance with both the port terminal and pipeline projects entering the final prequalification stage, alongside continued progress on the R\u00edo Indio reservoir and the Logistics Corridor project,” the administrator said.<\/p>\n A Strong Fiscal Year<\/strong><\/p>\n Vice President of Finance V\u00edctor Vial said the Panama Canal delivered a very strong first nine months of the fiscal year. “We continue to strengthen our balance sheet, which is essential for the investments ahead. Demand has also remained very strong,” he said.<\/p>\n During the period, revenues reached $4802 million USD which represents a 17% year-over-year increase, while net income totaled $3614 million USD; a 19% increase compared with the same period last year.<\/p>\n \u00a0<\/strong><\/p>\n \u00a0<\/strong><\/p>\n Preparing for El Ni\u00f1o<\/strong><\/p>\n The Panama Canal Administrator noted that the probability of a severe El Ni\u00f1o event has increased, rising significantly from 25% in April to 81%, as of July. As a result, the Panama Canal continues to closely monitor weather conditions and stands ready to implement preventive measures based on lessons learned during the 2023\u20132024 El Ni\u00f1o event.<\/p>\n V\u00e1squez warned that “capacity restrictions will likely be implemented, not only in terms of draft limitations but also through reductions in the number of daily booking slots.” However, he emphasized that the timing and scope of any restrictions will ultimately depend on market conditions.<\/p>\n Daily transit auctions remain an important tool that provide customers with an additional opportunity to secure transit reservations when standard booking options are unavailable or when operational flexibility is required.<\/p>\n These precautionary measures are under consideration for the first time after nearly two consecutive years in which no draft restrictions were necessary, thanks to an abundant availability of water in the canal’s reservoirs. Heavy rainfall throughout 2025 and an unusually wet 2026 dry season allowed the canal to maintain above-normal water storage levels in its lakes.<\/p>\n