Panama To Fortify Future Amidst Falling Traffic

22 Oct Panama To Fortify Future Amidst Falling Traffic

Daily transits of commercial vessels through the Panama Canal are expected to remain below its capacity over the coming year due to tariff-linked factors such as the frontloading of US imports this year (which has now tapered off) and the anticipated lower levels of demand across the East and Gulf coasts. According to The Panama Canal Authority (ACP), whilst the daily capacity is 36 transits, only 33 are expected per day in 2026.

This reduced demand, in conjunction with other factors such as the volatility in trade routes, geopolitical tensions and challenges to globalisation have made it more difficult to form reliable long-term forecasts.

As a response to this ever-evolving landscape, The Panama Canal Authority (ACP) has opted for a ten-year strategic plan with the aim of strengthening its strategic role in global trade and ensuring its sustainability.

This plan focuses on two main pillars: securing water supplies for canal operations and human consumption and pursuing growth through business diversification and logistics development without increasing water usage.

This plan will invest more than $8 billion in strategic projects in four sectors: water availability; the construction of a pipeline for LPG; a road connecting both Atlantic and Pacific coasts; the construction of terminals built on either coast, as well as the building of the Rio Indio dam that will both guarantee water for more than one million residents and strengthen the reliability and certainty of transits through the Canal.

FOLLOW US FOR THE LATEST NEWS!

Simply click here to follow our LinkedIn Company Page to stay up-to-date with the latest industry news that may impact your business.