Panama Canal Operates At Full Capacity As LNG Tankers Reroute Amid US-Iran War

The Panama Canal is operating at full capacity, handling between 36 and 38 ships a day, as more LNG carriers are choosing this route due to the ongoing conflict involving Iran.

Canal administrator Ricaurte Vásquez said on March 20, 2026, that demand has increased mainly from ships loading liquefied natural gas at U.S. ports.

The situation in the Middle East has forced many vessels to change their routes.

The Strait of Hormuz, which is a key route for oil and gas exports from countries like Kuwait, Qatar and Bahrain, has been shut.

At the same time, many shipowners are avoiding the Suez Canal due to safety concerns.

Because of this, the Panama Canal is now being used more to move cargo, especially LNG, to different parts of the world.

Traffic through the canal was already rising before the conflict began around three weeks ago, but the current situation has pushed it even higher.

Authorities are now planning to offer one slot per day for LNG tankers, which is a big jump from just four slots per month earlier.

The canal is able to handle this increase because water levels have improved. In 2023 and 2024, a drought forced the canal to limit the number of ships passing through each day.

Now, with enough water available, it is running at full strength. Daily traffic has also gone above the earlier estimate of 34 ships per day for this year.

Officials have also said that a maintenance program planned from March to September will not affect ship movements.

At the same time, fewer container ships are coming from Asia during the January to March period, which has made it easier to give more slots to LNG carriers.

References: The Hindu, Reuters

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