Panama Canal Posts Strong FY2025 Results as Transits Surge 19%

• The Panama Canal has ended its fiscal year on a high note, with preliminary figures showing revenues up 14.4% to US$5.7Bn and total vessel transits rising 19.3% to 13,404 for the year ending September 30, 2025. The increase was driven mainly by container and liquefied petroleum gas (LPG) traffic, marking a robust rebound in global maritime flows through the strategic waterway.
• Container ships and LPG carriers have carried much of the momentum this year. Demand for both segments remained strong, fueled by tighter vessel availability and continued congestion at the canal. Bulk carriers, which had previously lagged, also began to recover, a welcome sign for operators who weathered quieter periods in recent years.
• Interestingly, while LPG volumes surged, liquefied natural gas (LNG) traffic did not keep pace. Canal officials attributed this to ongoing global market challenges, including freight rate volatility and weaker LNG demand in key import regions. Discussions are already underway on how to improve transit flexibility for LNG carriers, a segment that remains strategically important for the canal’s long-term balance.
• Starting October 5, 2025, the canal authority extended service hours and introduced an updated transit reservation system aimed at improving accessibility for shippers. These operational changes come alongside a recently approved government budget that includes a significant US$1.6Bn reservoir project - a long-term investment designed to bolster the canal’s water supply and capacity. From November, transit quotas will adjust to 31 ships per day, split between 9 Neopanamax and 22 Panamax passages. The decision reflects a balancing act: maximising throughput while managing environmental and operational constraints.
• While the canal’s performance looks healthy on paper, the picture at sea tells a more complex story. Persistent congestion has led to surging LPG time charter rates, with some operators choosing to bypass Panama altogether, rerouting vessels via the Cape of Good Hope. It’s a costly alternative, but one some shippers say buys predictability in a year of uncertainty.
• Even as this year’s financials impress, the Panama Canal Authority (ACP) has cautioned that fiscal 2026 may bring softer numbers. Economic headwinds, tariff shifts, and freight rate volatility could all dampen volumes. Still, investment continues. Expansion projects are being lined up for 2026 to enhance capacity and sustainability. Among them: the new NetZero slot, launching this month, which gives preferential access to low-carbon vessels, a first for the canal. As global trade patterns evolve, the canal’s strategy seems clear: stay open, stay adaptable, and keep water - and ships - flowing.

(Source: BreakBulk News)