October25 , 2026

    Panama Canal restores full draft amid global trade shifts

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    The Panama Canal Authority (ACP) has confirmed that the waterway is operating at full capacity, maintaining a 50-foot draft throughout the dry season.

    The update, delivered during the ACP’s third quarterly market call, marks a return to normal operations following prolonged drought-related restrictions in 2023 and early 2024, which had forced the ACP to limit daily transits and reduce draft allowances.

    The full restoration supports the transit of fully laden containers and bulk vessels and improves scheduling reliability across East-West and North-South trades.

    ACP Chief Financial Officer, Victor Vial, reported that the authority has strengthened its financial position, reducing debt from $2.6 billion in 2019 to $600 million in 2025.

    He also highlighted the performance of the Long-Term Slot Allocation (LoTSA) system, which has generated more than $77 million in additional revenue.

    In response to shifting trade flows, the ACP is exploring new infrastructure opportunities, including transhipment capacity and a potential liquefied petroleum gas (LPG) pipeline.

    According to ACP Administrator, Dr. Ricaurte Vásquez Morales, LPG and container volumes are trending upward, while dry bulk has recovered from last year.

    The ACP also reported progress on operational sustainability, including the deployment of hybrid tugboats and the introduction of a carbon-reduction slot programme.

    Watershed and community support initiatives continue in areas adjacent to the canal.

    Last month, the Head of the Panama Canal Authority voiced concerns that a proposed $23 billion global ports transaction, which includes two Panamanian terminals, could compromise the canal’s longstanding commitment to neutrality.