The Panama Canal is operating at full capacity, handling 36 to 38 vessels a day, as global shipping patterns shift due to the war in Iran and disruptions in other major maritime routes. Demand has risen sharply for liquefied natural gas tankers, especially those loading at United States ports, making the canal an increasingly important alternative route for energy shipments.
Rising LNG Transit Demand
The canal authority is preparing to offer one daily slot for LNG tankers, up from about four slots a month recently. This marks increase in access for energy carriers. The rise in demand reflects the need to move cargoes quickly to consuming countries amid route disruptions.
Impact of Wider Shipping Disruptions
Many vessels are avoiding or struggling to use the Suez Canal. The closure of the Strait of Hormuz has also affected the movement of energy products from Kuwait, Qatar and Bahrain. As a result, the Panama Canal is being used more as a substitute route for global energy trade.
Water Availability and Capacity Recovery
The canal had faced restrictions in 2023 and 2024 because of drought and low freshwater levels. Improved water availability has allowed operations to return to top capacity. The average daily transit now exceeds the forecast of 34 vessels for the fiscal year.
Maintenance and Seasonal Traffic Pattern
Planned maintenance from March to September is not expected to disrupt traffic. Seasonal weakness in container ship demand from Asia during January to March also frees capacity for tankers carrying energy products, strengthening the canal’s role in current trade flows.
Last Modified: April 29, 2026