Panama Canal hits peak operations amid US-Iran war
What's the story
The Panama Canal, the world's second-busiest waterway, is now operating at full capacity. The surge in traffic is due to an increase in liquefied natural gas (LNG) vessels. This comes as the ongoing conflict affecting the Suez Canal and Strait of Hormuz makes Panama a key alternative route for global shipping.
Increased traffic
Increase in LNG vessels
Ricaurte Vasquez, the chief of Panama Canal, revealed that the waterway is currently handling 36-38 vessels a day. The demand for LNG tankers, especially those loading at US ports, has been particularly high. This comes as many vessels have been struggling to reach or avoiding the world's largest waterway, the Suez Canal, since the war began.
Operational adjustments
1 slot a day for LNG tankers
The Panama Canal was already witnessing an uptick in LNG vessel traffic before the war started nearly three weeks ago. Now, it is preparing to offer one slot a day for LNG tankers to transit the canal, a significant increase from the recent four per month. Vasquez said, "We have (enough) water now, so we are working at top capacity," referring to a previous drought that led to passage restrictions between 2023 and 2024.
Future plans
Canal authority's assurance
The canal authority has assured that a planned maintenance program from March to September will not impact traffic through the waterway. "Cargoes must reach their destinations and the shortest route is still Panama, which has the capacity to accommodate additional transit," Vasquez said. This statement highlights Panama's strategic importance in global shipping routes amid ongoing conflicts.