Panama Canal Breaks 2022 Cargo Record At 521 Million Tonnes Amid Hormuz Closure And Drought

The Panama Canal handled a record 521 million tonnes of cargo in the year ending September 30, as ships sought alternative routes following the closure of the Strait of Hormuz during the Middle East war. The canal also faced water shortages caused by El Niño, which forced it to reduce the number of ships allowed through each day.

The canal recorded 13,951 ship transits during the 2026 fiscal year, up from 13,404 in the previous year. Cargo volume increased by 6.5%, while revenue rose 16.6% to $6.6 billion, according to figures released by the Panama Canal Authority (ACP) on October 21.

The previous cargo record was 518 million tonnes in 2022.

Canal administrator Ilya Espino de Marotta told Agence France-Presse that ship traffic had increased after the closure of the Strait of Hormuz. Before the conflict, about 20% of the world’s oil and liquefied natural gas (LNG) passed through the strait.

The Panama Canal carries around 5% of global maritime trade. The increase in traffic came as the closure of a major energy shipping route disrupted the usual movement of cargo.

The Panama Canal temporarily raised its daily transit limit from 36 to 41 ships to handle the extra traffic after the closure of Hormuz, Espino de Marotta said.

But drought later forced the authority to cut the limit to 32 ships a day in early September. It was later raised to 33.

The canal needs fresh water from two artificial lakes to operate its locks. A lack of rainfall linked to El Niño lowered water levels and restricted ship movements.

Espino de Marotta said the effects of El Niño were felt during the final four months of the fiscal year. The rise in cargo traffic had taken place over the course of the year.

Despite the water shortage, she said the canal had been able to carry more cargo when shipping companies needed an alternative route.

The 80-kilometre (50-mile) canal connects the Atlantic and Pacific oceans. It serves ships travelling between Asia and the US East Coast, including routes from China, Japan and South Korea. The United States is its largest user.

The main cargoes carried through the canal include containers, liquefied petroleum gas (LPG), vehicles, grain and LNG. LNG has seen the biggest increase in recent months, according to the supplied information.

The closure of the Strait of Hormuz disrupted normal energy shipments and led some shipping companies to look for other routes. The Panama Canal increased its daily transit limit for a period to accommodate the additional traffic.

The canal set its cargo record despite the drought, but low water levels continued to limit the number of ships it could handle.

El Niño is a natural climate pattern that affects ocean temperatures and weather conditions. In Panama, the lack of rainfall reduced water levels in the lakes that supply the canal.

The latest reported daily transit limit was 33 ships. The supplied information does not say whether the authority has made further changes.

References: ibtimes, ticotimes