Panama Ports Container Throughput Edges Up 1.8% in First Half, Showing Resilience Under Canal Restrictions

Panama Ports See 1.8% Increase in Container Throughput in First Half of Year, Resilience Under Canal Transit Restrictions

According to the latest data from the Panama Maritime Authority, the country's port container throughput in the first half of 2026 increased by 1.8% year-on-year. Against the backdrop of ongoing Panama Canal transit restrictions and pressure on global container shipping demand, this growth rate has drawn industry attention. Although the year-on-year growth rate has slowed significantly compared to previous years, considering the decline in canal capacity and increased regional competition, the 1.8% increase still reflects the resilience of Panama as a hub port in the Americas.

Key Data and Driving Factors

According to a report by Seatrade Maritime News (July 21, 2026), Panama's two main ports—Balboa (Pacific side) and Cristobal (Atlantic side)—handled a combined container volume higher than the same period in 2025. Among them, Balboa benefited from transshipment demand on routes from South America's west coast and Asia, showing more significant growth; while Cristobal, affected by canal transit restrictions, saw smaller vessels calling and relatively moderate growth. Specific TEU figures were not disclosed in the report, but the industry estimates the total for the first half to be around 3.5 million TEUs.

• The main growth drivers include:
• Increased proportion of transshipment cargo: Due to canal restrictions, some transpacific routes have been adjusted to go around Cape Horn or via the Suez Canal, but a considerable proportion of cargo still chooses to transship and unload at Panamanian ports, then be transported by land or small vessels to the Caribbean and the East Coast of North America.
• Improved port operation efficiency: The Panama Maritime Authority has continuously invested in automated equipment and terminal expansion in recent years. For example, MIT (Panama International Terminal) added new quay cranes and yards, reducing the average vessel turnaround time by about 6%.
• Growth in Latin American regional trade: Exports from Brazil, Chile, and other countries to Asia (such as agricultural products and minerals) remained stable, with some containers transshipped via Panama.

Supply Chain Impact AnalysisThe growth of Panama's ports has multiple implications for global supply chains: - Alternative routes under canal restrictions: Since 2023, the Panama Canal has repeatedly reduced draft limits due to drought. In the first half of 2026, the daily number of transiting vessels has dropped from 36 to around 28. Container ships are forced to reduce cargo or reroute, leading some goods originally scheduled to pass through the canal to be unloaded at Panamanian ports, then transported via land bridge (rail or truck) to ports on the other side for reloading. This "dry transfer" model has increased Panama's port throughput but raised overall transport costs (an additional 200-400 USD per container). - Regional port competition dynamics: New terminals such as Chancay Port in Peru (invested by COSCO Shipping) on South America's west coast are diverting some Asia-South America direct cargo, but Panama, leveraging its geographical centrality, remains a key transshipment hub for Caribbean and North America East Coast routes. The slight increase indicates that Panama's hub status is difficult to replace in the short term. - Inventory and timeliness: The 1.8% growth rate is lower than the global average container trade growth (about 3%), reflecting that canal restrictions have led some shippers to shift to U.S. West Coast ports or U.S. Gulf Coast ports, creating a certain dampening effect on demand for Panamanian ports.

Regional and Industry Impacts

Asia-Pacific–Americas Trade Corridor: About 20% of goods from China, Japan, and South Korea to the U.S. East Coast and South America's East Coast still pass through the Panama Canal or ports. The throughput growth indicates that Asian exports to the Americas still rely on the Panamanian hub during the ongoing adjustment of trade flows.

Intra-Latin American Trade: Export goods from Pacific coast countries such as Chile and Peru are transshipped via Panama to Central America and the Caribbean. This growth supports the performance of ports on the Pacific side.

Shipping Line Strategies: Shipping lines such as Maersk, MSC, and CMA CGM have adjusted their service networks, increasing the frequency of calls at Panama to utilize transshipment services. For example, the 2M Alliance redesigned its Transpacific–U.S. East Coast routes (TP1/TPA) and added a call at Balboa Port.

Port Capacity and Investment Outlook

• The Panama Ports Authority is advancing several expansion projects:
• Balboa Port: Plans to build two new berths, expected to be operational by 2028, with a designed annual capacity increase of 800,000 TEU.
• Cristobal Port: The first phase of a new container terminal will be commissioned in 2027, increasing Atlantic side capacity by 40%.
• Logistics parks near the canal: Attracting third-party logistics companies to establish distribution centers to capture warehousing demand from nearshoring.

Total infrastructure investment is expected to exceed 1.5 billion USD, but financing progress has been slowed by the pandemic and interest rate impacts.

Future OutlookIn the short term, the El Niño phenomenon may further exacerbate the drought in Panama, and canal transit restrictions may persist or even tighten in the second half of 2026, potentially causing port throughput growth to fall back to within 1%. In the medium to long term, with canal expansion plans (such as developing new reservoirs in the future) and port automation upgrades, Panama is expected to maintain its position as a transit hub in the Americas. However, competitive pressure from new ports in countries such as Mexico and Colombia, as well as from U.S. domestic ports (e.g., Houston, Savannah), cannot be ignored.

Conclusion

Panama's ports saw a 1.8% increase in container throughput in the first half of 2026. Although this is below historical averages, it remains a positive signal against the backdrop of canal transit restrictions and global trade fragmentation. This growth is mainly driven by transshipment and efficiency optimization rather than conventional direct shipping. For global logistics practitioners, it is essential to pay attention to Panama's evolving role as a "buffer hub" — that is, whether ports can efficiently receive and transship cargo when canal transit is restricted will directly impact the resilience of the entire Americas supply chain.

Source URL: https://www.seatrade-maritime.com/ports-logistics/panama-ports-container-volumes-up-1-8-in-h1