Panama Canal Revenue Set to Beat Forecast as Hormuz Closure Boosts Traffic

• The Panama Canal expects revenue to exceed its US$5.2Bn forecast for fiscal 2026. The closure of the Strait of Hormuz drove more vessels through the waterway, while higher auction payments from ships seeking to skip the queue also supported revenue.

• Liquefied natural gas (LNG) tankers flocked to the canal as buyers in Japan, China and South Korea turned to US suppliers to replace Middle Eastern producers affected by the war in Iran, including Qatar. Traffic from oil tankers carrying US crude to Asia also increased.
• At the peak of the Hormuz closure, the canal handled approximately 40 to 41 ships per day, compared with the normal 34 to 35 vessels. In April, one ship paid an additional US$4Mn to move to the front of the queue as waiting times increased for vessels without bookings.
• Traffic has since eased to approximately 36 to 38 vessels per day. However, bookings for June and July were strong, and the canal continues to handle an average of one LNG tanker per day even after an agreement to reopen the Strait of Hormuz.
• Incoming administrator Ilya Espino de Marotta will take control of the canal in September and serve until 2033. She will oversee an approximately US$8.5Bn investment programme, including a new dam and reservoir, two port terminals and an LPG pipeline.
• The Hormuz closure reinforced the Panama Canal’s importance as a route for US energy exports to Asia, as buyers sought alternatives to affected Middle Eastern suppliers. Although daily transits have eased from their peak, strong bookings for June and July and the continued passage of LNG tankers are providing further support to revenue.

(Source: Newsroom Panama)