Panama Canal revenue set to beat $5.2B forecast after Hormuz closure

The Panama Canal expects its fiscal 2026 revenue to exceed an initial forecast of $5.2 billion after the closure of the Strait of Hormuz pushed more vessels through the key waterway linking the Caribbean Sea and Pacific Ocean, Bloomberg reported Friday. Ilya Espino de Marotta, the Panama Canal Authority’s incoming administrator, said revenue for the fiscal year ending September 30 would come in “a little bit more” than earlier projected, supported by stronger traffic and higher auction payments from ships seeking faster passage.

Traffic surge and LNG boost

The canal handled 40 to 41 vessels per day at the peak of the Hormuz closure, above the usual 34 to 35 daily transits. Traffic has since eased to around 36 to 38 ships per day, while bookings remain strong. LNG tankers increased their use of the canal as buyers in Japan, China, and South Korea turned to US suppliers to replace Middle East producers affected by the conflict. The canal is currently handling an average of one LNG tanker per day.

Expansion projects

Espino de Marotta, who has worked at the canal for 41 years and helped oversee its 2016 expansion, is set to take over as administrator in September. She will supervise projects including a new dam and reservoir, two ports, and a pipeline, estimated at $8.5 billion and targeted for completion by 2032. Construction is expected to begin in late 2027 or early 2028. The developments come after President Trump last year threatened to retake control of the canal, citing Chinese interference. Panama’s top court later struck down a contract with a Hong Kong-based operator.