Panama Canal Sees Revenue Beating Forecast After Hormuz Closure

The Gas Amethyst liquefied petroleum gas (LPG) and ammonia carrier navigates the Agua Clara locks of the Panama Canal near Colon, Panama, on Thursday, June 11, 2026. Photo by Walter Hurtado /Photographer: Walter Hurtado/Blo

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(Bloomberg) — The Panama Canal expects revenue to exceed its $5.2 billion forecast for fiscal 2026 after the closure of the Strait of Hormuz drove more ships through the waterway connecting the Caribbean Sea and the Pacific Ocean.

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Ilya Espino de Marotta, the Panama Canal Authority’s incoming chief, said in an interview Thursday that revenue for the fiscal year ending Sept. 30 will come in “a little bit more” than the initial estimate, boosted by rising traffic and auction payments from vessels willing to skip the line. In April, one ship paid an extra $4 million to jump to the front of the queue as wait times grew for unbooked crossings.

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Liquefied natural gas tankers flocked to the canal as buyers in Japan, China and Korea turned to US suppliers to replace Middle East producers such as Qatar, which were affected by the war in Iran. Oil tankers carrying US crude to Asia through the canal also increased.

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At the peak of the Hormuz closure, the canal was handling 40 to 41 ships a day, above the normal 34 to 35, Espino de Marotta said. Traffic has since eased to about 36 to 38 vessels a day. Bookings for June and July are strong, which should support higher revenue, she said.

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The canal is currently transiting an average of one LNG tanker a day as US suppliers continue to ship to Asia even after a deal to reopen Hormuz. That trade had largely disappeared in recent years as European buyers absorbed US supply following Russia’s invasion of Ukraine, she said.

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Canal Expansion 

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A Panamanian engineer who graduated from Texas A&M University, Espino de Marotta has worked at the canal for 41 years. She helped oversee the canal expansion that opened in 2016 and became deputy administrator in 2019. In May, the canal’s board named her the authority’s next administrator for 2026 to 2033. She will take the helm in September.

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Espino de Marotta will oversee several major projects, including a new dam and reservoir, two ports and an LPG pipeline expected to cost about $8.5 billion in total.

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“The canal has been an institution that has long-term planning,” Espino de Marotta said. “We’re executing a very ambitious strategic plan that we have for the next 10 years.”

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Last year, Donald Trump threatened to take back the canal over alleged Chinese interference in the waterway. In January, Panama’s top court struck down a contract granted to Hong Kong’s CK Hutchison Holdings to operate two ports near the canal. The government of President José Raúl Mulino seized control of the ports and awarded their interim operation to APM Terminals, a division of AP Moller-Maersk, and Switzerland-based Mediterranean Shipping Co.

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The canal is prequalifying bidders for the reservoir and its own port terminals — separate from those formerly operated by CK Hutchison — and expects construction on both projects to begin in late 2027 or early 2028, Espino de Marotta said.

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The canal authority is in talks with the energy industry to finalize details for the pipeline, including which hydrocarbons it will carry, and is targeting completion of all the projects by 2032, she said. Financing for the dam is already in place, and the canal will likely tap international markets and seek multilateral loans to fund part of the ports and pipeline.

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