By Michael McDonald
June 26, 2026 (Bloomberg) – The Panama Canal is set to earn more than the projected $5.2 billion for the 2026 fiscal year, as the closure of the Strait of Hormuz has resulted in an increase in shipping traffic through this vital route between the Caribbean Sea and the Pacific Ocean.
Ilya Espino de Marotta, the new chief of the Panama Canal Authority, mentioned in an interview on Thursday that the revenue for the fiscal year ending on September 30 is expected to be “a little bit more” than the earlier estimate. This increase is due to higher traffic and auction payments from ships eager to move ahead in line. For instance, one ship paid an extra $4 million to skip to the front of the queue when wait times grew for unbooked crossings in April.
There has been a surge in liquefied natural gas (LNG) tankers using the canal, as buyers in Japan, China, and Korea have turned to U.S. suppliers to make up for losses from Middle Eastern producers like Qatar, impacted by the ongoing conflict in Iran. There has also been an increase in oil tankers transporting U.S. crude to Asia through the canal.
During the peak of the Hormuz closure, the canal was accommodating between 40 to 41 ships daily, surpassing the usual 34 to 35 ships, according to Espino de Marotta. Currently, traffic has stabilized to about 36 to 38 vessels each day. She also noted that bookings for June and July remain strong, which will likely enhance revenue further.
The canal is averaging one LNG tanker per day, as U.S. suppliers continue their shipments to Asia even after the reopening of Hormuz. This trade had diminished in recent years as European buyers took on the U.S. supply following Russia's invasion of Ukraine.
Canal Expansion
Espino de Marotta, a Panamanian engineer who graduated from Texas A&M University, has been working at the canal for 41 years. She played a key role in the canal expansion project that was completed in 2016 and has served as the deputy administrator since 2019. In May, she was appointed as the next administrator of the authority for the 2026 to 2033 period and will assume her role in September.
She will oversee several significant projects, including a new dam and reservoir, two ports, and an LPG pipeline, which are expected to cost around $8.5 billion in total.
“The canal is an institution with long-term planning,” Espino de Marotta said. “We are implementing a very ambitious strategic plan for the next 10 years.”
Last year, Donald Trump threatened to reclaim control of the canal over alleged Chinese interference. In January, Panama's highest court nullified a contract given to Hong Kong’s CK Hutchison Holdings to operate two ports near the canal. The government, led by President José Raúl Mulino, took control of the ports and gave temporary operations to APM Terminals, a division of AP Moller-Maersk, and Switzerland-based Mediterranean Shipping Co.
The canal authority is currently prequalifying bidders for the reservoir and its own port terminals—separate from the ones that CK Hutchison previously managed—and expects construction to start on both projects in late 2027 or early 2028, according to Espino de Marotta.
Additionally, the canal authority is negotiating with the energy sector to finalize details for the pipeline, including the types of hydrocarbons to be transported, and aims to complete all projects by 2032. Financing for the dam is already secured, and the canal will likely seek funding from international markets and pursue multilateral loans to help finance the ports and pipeline.