The Panama Canal is currently generating more revenue than at any point in its recent history, with a 10% to 15% year-on-year increase. Daily transits have frequently reached their operational ceiling, and the cost of auction slots for crossings has almost tripled since late February, following the effective closure of the Strait of Hormuz to Western-associated shipping. Despite this windfall, the Canal's leadership is hesitant to incorporate these increased earnings into full-year projections, citing the unpredictable nature of the Middle East crisis.
According to Chief Financial Officer Victor Vial, the caution is due to the rapid fluctuations in market disruptions. While acknowledging a record-setting $4 million payment by one gas tanker for a single crossing, Vial clarified that this was an outlier, with less than 1% of the 400 auctions since February 28 exceeding $3 million, and about 80% remaining below $1 million. The average price for a reserved crossing has surged from $135,000 before the conflict to approximately $385,000, and for those without bookings, an additional $425,000 is now typically required, up from $250,000-$300,000 previously. This increased demand is partly driven by energy-transporting ships, particularly LNG and oil tankers.
Tanker transits have shown significant growth, with a 37% rise in oil tankers and a doubling of liquefied natural gas (LNG) vessels comparing the current fiscal year to the last. The cumulative tally for high-draught transits stood at 7,444 for the seven months to April 2026, a 5.1% increase from 7,083 in the equivalent period of fiscal year 2025. The Canal reported a net profit of $4.1 billion on revenues of $5.71 billion in fiscal year 2025. The current projection for fiscal year 2026 is $5.8 billion, with first-half net earnings already up 12% year-on-year to $2.3 billion on revenues of $3 billion.
The surge in traffic has also led to congestion, with tankers and cargo ships facing three-and-a-half-day waits to enter the Canal. This situation has prompted some vessels to pay substantial sums to expedite their passage, as exemplified by the $4 million payment. The conflict in Iran and the accompanying disruption in global trade routes, particularly the closure of the Strait of Hormuz, are the primary drivers of this increased demand, causing shipping companies to divert their vessels to safer routes like the Panama Canal.
The Panama Canal's revenue contributes significantly to Panama's GDP, accounting for between 7% and 9%. Canal administrator Ricaurte Vásquez Morales noted that the ongoing conflict could boost LNG trade through the Canal, as Asian energy buyers look for alternative sources to the Middle East, potentially increasing US LNG shipments via the Canal to Asia. The Canal management acknowledges that this revenue surge, while genuine, relies on a geopolitical crisis that could de-escalate and highlights the waterway's exposure to water system challenges due to forecasting El Niño and dry conditions.
