Panama Canal Warns of Traffic Decline as Economic Uncertainty Grows
- The Panama Canal will take in about $400Mn less in the next fiscal year due to a drop in ship traffic caused by global economic uncertainty, the canal authority warned Tuesday, August 20, 2025.
- For the upcoming fiscal year beginning October 1, 2025, the canal is expected to generate $5.207Bn from ship transits and other services, which represents a decrease of $411Mn (-7.4%) compared with projected revenues for the current fiscal year, which ends September 30.
- According to forecasts, there will be between 1,100 and 1,200 fewer transits than this year, when approximately 13,900 vessels carrying roughly 520 million tons of cargo will have crossed the route.
- This anticipated decline in revenues stems from lower projected global economic growth rates, which have fallen from 3.3% earlier this year to 2.5% on August 20, 2025, and extreme volatility due to tariffs imposed by U.S. President Donald Trump.
- The 80-kilometer Panama Canal links the Pacific and Atlantic Oceans and connects more than 1,900 ports in 170 countries. Roughly 5% of global maritime trade passes through the canal. Its main route connects ports in China, Japan, and South Korea with terminals on the U.S. East Coast.
- Despite the projected revenue drop, the canal expects to deliver $3.194Bn to Panama’s national treasury next year—about $400Mn more than this year.
(Source: Tico Times)