Panama Canal Maintenance Expected to Have Minimal Disruption amid Trade Slowdown

The Panama Canal Authority (PCA) has announced a scheduled five-day closure of the west lane of the Pedro Miguel lock for maintenance from May 27 to 31, with operations shifting to the east lane during this period. While this might typically signal delays, industry experts suggest the impact will be limited due to reduced shipping traffic.

According to a recent update by shipping broker NETCO, the ongoing trade war between the US and China has significantly softened demand, resulting in shorter wait times and decreased auction prices for passage through the canal. This shift in traffic patterns has led to a decline in auction slot prices — the highest bid last week was $65,000, a steep drop from $101,000 the previous week. Simultaneously, average wait times have also reduced, with southbound vessels waiting just 0.4 days and northbound vessels 1.2 days. However, analysts caution that this stability hinges on subdued market conditions. The stability is fragile and closely tied to subdued traffic levels – particularly in container, LNG, and tanker segments. A rebound in global trade in the second half of 2025 could put renewed pressure on the canal.

During the maintenance period, the number of available slots will be reduced to 16 per day, and no booking slots will be available for regular vessels. Limited slots will be open for supers through the second tiebreaker competition, with further restrictions on daylight passage.

While the PCA continues to manage operations proactively, shippers are advised to monitor booking windows, slot availability, and rainfall patterns — all factors that may affect canal transit efficiency in the coming months.