Panama and the United States began joint military exercises to safeguard the Panama Canal on January 12th, with 50 US Marines and 61 Panamanian forces taking part. China threatened to block sales of strategic ports to BlackRock-led groups unless Cosco had a stake. Panama advanced hydrographic commitments with plans for $8.5 billion upgrades for reliability purposes.
From January 5-10, 2026, the Panama Canal story has focused on stabilising transit conditions and renewing relations with the United States. Operationally, it has entered 2026 with more predictable slot allocation, relaxed draft limits, and unchanged toll structures; politically senior Panamanian officials have reiterated that its operation remains efficiently managed and fully under Panamanian control.
Panama and the United States have signed an accord that grants priority and free passage for American military vessels through the Panama Canal. Pentagon chief Pete Hegseth made this announcement following discussions with Panamanian officials, signaling an important shift in bilateral relations.
On its 26th anniversary under Panamanian control, the Panama Canal contributed $31.231 billion to Panamanian coffers since 1999. President Mulino announced that US concerns were resolved amid Trump's threats over Chinese port influence; an important natural gas pipeline project along the canal progressed; while CK Hutchison's port sale faces potential 2026 deadlock between US and Chinese interests.
On December 31st 2025, Panamanian administration of the Panama Canal commemorated 26 years with a ceremony and sustained growth celebrations, showing national pride. Transits had increased 19.3% year-to-year to 13,404; these transits rebounded from drought impacts as December operations maintained steady vessel allocations despite water challenges.
On December 27, 2025, local authorities in Arraijan unlawfully demolished a Chinese monument near the Panama Canal entrance, prompting outrage from President Jose Raul Mulino, Chinas Embassy, and Beijing. Mulino strongly condemned this action and ordered its restoration while China lodged formal protests about this action; all this took place amidst US-China rivalry over canal ports.
BlackRock-led acquisition of CK Hutchison global ports - including Panama Canal terminals - that was due to be acquired through BlackRock for $23 billion is in peril as China's Cosco demands majority stake ownership and tensions escalate between US interests and Cosco. Panama continues its fight against $1.2 billion corruption claims against port operators while simultaneously starting up 2025-2026 cruise season operations.
In Panama, between January and October 2025, the growth in vessel transits across the Panama Canal rose by 5.6% helping Panama’s monthly economic activity index and solidifying its role as a trade engine despite issues in construction and parts of trades impacted by container freight cancellations and land cargo cancellations. Growth in container throughput in national port systems as well as enhanced air connectivity put the logistics hub strategy on a firm footing ahead of problems in industries suffering the most from trade tensions and the construction cycle.
The Panama Canal Authority has made “forward-looking investments in new ports and gas pipelines” in light of changing global trade routes . Recent announcements include greater LPG transits, plans to soon break ground on a new port facility, and wooing others to invest.
Panama re-elected to the International Maritime Organization Council's Category "A" category on December 1, 2025. The Panama Canal Authority also reported results for Fiscal Year 2025 highlighting the recovery from the drought. "The Authority reported a significant fiscal year 2025 as it restored its numbers and reelected to the International Maritime Organization Council’s ‘Category A’ category on 1 December 2025. “With transits up 19.3% year on year to 13,404 vessels and cruise operations returning with cruise line Queen Elizabeth doing her transit,” wrote cruise industry writer David Eads.
The Panama Canal Authority has launched the first chapter in its 10-year, $8.5 billion modernization drive by kicking off consultations for the two transshipment terminals and gas pipeline project. Details were revealed by Administrator Ricaurte Vasquez Morales at the Houston International Maritime Conference. Prequalification rounds for both projects will be held in 2026, while concessions will be finalized two years later in 2027.
Ricaurte Vasquez, during the Houston International Maritime Conference, presented on Panama Canal’s strategy (expansion) to keep one step ahead of changes in world trade - essentially, Panama just spent $8.5B in 'modernization' on adding two new transshipment terminals, an LPG pipeline project, and net zero shipping, among other features.
The Transportation and Logistics Conference Americas 2025 will be held from October 21 – 23, 2025 in Panama City, Panama. The event will bring together port operators, container supply chain stakeholders, maritime professionals and maritime trade professionals to promote dialogue about the trade logistics systems, port infrastructure sustainability investments throughout the Americas, and innovation investments.
Atlantic LNG spot charter rates jumped sharply from mid to late November as winter fundamentals continued to tighten, crossing above $110,000 per day. A further hike was seen as a result of growing US LNG exports, increasing floating storage costs, seasonal demand growth and shipowners moving Pacific vessels to take advantage of tightening spreads between basins.