Panama Canal Reduces Slots in May for Maintenance as Tariffs Slow Traffic

• The Panama Canal is set to close the west lane of its Pedro Miguel lock for five days later this month for maintenance, but reduced traffic because of the trade war between the U.S. and China should mean smooth sailing for shippers.
• In an update, analysts at shipping broker, NETCO, noted that the trade war between the U.S. and China has led to reduced traffic, shorter wait times and lower auction prices at the vital waterway, which likely means disruptions because of the maintenance will be minimal.
• Notably, the report noted that the number of unbooked regular-size vessels is slowing, with fewer than 50 arrivals projected over the next week. Previously, the availability of auction slots was limited to two per day for regular-sized vessels. However, with slowing demand for slots, auction prices are coming down, NETCO said, with the highest bid last week coming in at $65,000, down from the previous week’s highest bid of $101,000.
• This indicates that the situation at the canal is improving. Average waiting times are also falling, with southbound vessels waiting 0.4 days and northbound vessels waiting 1.2 days over the past week. The improved situation at the canal, however, is due to softer market conditions as well as the Panama Canal Authority’s (PCA’s) operational adjustments. “However, this stability is fragile and closely tied to subdued traffic levels – particularly in container, liquefied natural gas (LNG), and tanker segments,” NETCO said.
• “As global trade demand begins to rebound in the second half of 2025, increased pressure on the canal could reintroduce bottlenecks and cost volatility. Ongoing monitoring of transit slot availability, auction pricing, vessel queues, and rainfall patterns will be key to anticipating whether current efficiencies can be sustained or if renewed congestion is likely.”

(Source: Newsroom Panama)