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The Panama Canal is operating near full capacity as global shipping patterns shift in response to ongoing disruptions in the Strait of Hormuz, placing fresh pressure on one of the world’s most critical maritime trade routes.
Traffic through the canal has risen sharply in recent weeks, driven largely by increased shipments of crude oil, liquefied natural gas (LNG) and refined fuels from the United States to Asian markets. According to shipping association BIMCO, average daily vessel transits through the canal have climbed 8% year-on-year to around 38 ships a day, close to the canal’s operational limit of 36 to 40 transits.
The increase follows growing instability around the Strait of Hormuz, a key energy chokepoint that handles a significant share of global oil and gas exports. Reduced shipping activity in the Gulf region and security concerns along Middle East trade routes have forced buyers to seek alternative energy supplies, particularly from the US Gulf Coast.
The rerouting of cargoes has significantly increased demand for Panama Canal transit slots, especially among tanker operators. Canal authorities and shipping analysts say waiting times for vessels have increased by nearly 50% compared with last year, with average delays reaching close to two days. Auction prices for last-minute transit slots have also surged as operators compete for limited passage capacity.
Container vessels, LPG carriers, oil tankers and dry bulk ships continue to account for the majority of canal traffic. However, energy carriers have emerged as the primary source of growth this year as trade flows adjust to geopolitical disruptions in West Asia.
Shipping executives say the congestion reflects a broader restructuring of global supply chains, with cargoes increasingly moving along longer and less conventional routes. Some crude shipments that would normally move through the Gulf are now being redirected through the Atlantic Basin and across Panama toward Asia.
The renewed strain on the Panama Canal also raises concerns over future capacity management. The waterway only recently recovered from severe drought conditions that forced transit restrictions during 2023 and 2024. Industry observers warn that another period of low rainfall or El Niño-related weather disruptions could tighten capacity further if elevated shipping demand continues.
Analysts say the latest developments underline the growing vulnerability of global trade to disruptions at major maritime chokepoints, where geopolitical tensions in one region can quickly reshape shipping flows and logistics costs worldwide.
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Adani Ports and Special Economic Zone (APSEZ) has expanded its technology partnership with US-based supply chain software provider Kaleris, committing up to $100 million toward automation and optimisation initiatives as it accelerates digital transformation across its port operations. The multi-year agreement will see Kaleris deploy AI-enabled terminal operating and optimisation systems across APSEZ’s network of 15 container terminals located at nine domestic and international ports. The rollout is intended to create a unified digital platform that improves operational visibility, planning accuracy and resource utilisation across the company’s maritime logistics ecosystem. The investment forms part of APSEZ’s broader plan to spend approximately $850 million on technology upgrades and decarbonisation initiatives by 2031. The company said automation investments under the Kaleris partnership will be implemented in phases to support long-term capacity expansion and operational efficiency goals. According to APSEZ, the technology deployment is expected to help unlock an additional 91 million metric tonnes (MMT) of cargo-handling capacity by 2030, equivalent to roughly 10% of its current installed capacity. The company is targeting annual cargo-handling capability of one billion tonnes by the end of the decade. The expanded programme builds on earlier deployments at six ports and will extend advanced planning, container handling and terminal optimisation capabilities across the wider network. APSEZ expects the systems to improve yard utilisation, accelerate vessel turnaround times and enhance end-to-end coordination between port assets and logistics operations. The company said the initiative aligns with its strategy to integrate artificial intelligence, Internet of Things (IoT) technologies and data-driven decision-making into port operations. By standardising systems across multiple terminals, APSEZ aims to improve productivity and operational consistency while supporting future growth in cargo volumes. As India’s largest integrated transport and logistics operator, APSEZ currently accounts for a significant share of the country’s port cargo volumes and continues to expand its domestic and international footprint. The latest investment underscores the growing role of automation and AI in modern container terminal management as operators seek higher efficiency, faster vessel turnaround and improved supply chain visibility. Follow CARGOCONNECT for more such updates.
Adani Ports and Special Economic Zone Ltd. (APSEZ) has secured a 10-year marine services contract for Argentina's first liquefied natural gas (LNG) export project, marking the company's entry into South America and strengthening its presence in the global energy logistics sector. The contract was awarded to an APSEZ-led consortium comprising its subsidiary Adani Harbour International FZCO and Argentina-based Meridian Group following an international tender process conducted by Southern Energy SA. The project carries an estimated investment commitment of US$70 million. Under the agreement, the consortium will provide a range of marine services for the Southern Energy floating LNG (FLNG) project, including tug operations for LNG carriers, offshore logistics support and crew transportation. Operations will be supported by four tugboats, an anchor-handling tug supply vessel and a crew boat. The award represents a significant international expansion for APSEZ, which has been increasing its presence in marine services linked to ports, energy terminals and offshore infrastructure. The Argentina project will give the company a foothold in a new geography while diversifying its revenue streams beyond traditional port operations. Located in the San Matías Gulf in Río Negro Province, the Southern Energy project is expected to become Argentina's first operational LNG export facility. The development will liquefy natural gas transported through the General San Martín pipeline using a floating LNG vessel. . For APSEZ, the contract highlights the growing role of logistics and marine service providers in supporting global energy supply chains. The company is expected to play a key role in vessel handling and offshore operations critical to the project's export activities. The deal also reflects increasing commercial links between India and Argentina in the energy sector, with LNG emerging as a strategic component of long-term trade and supply chain cooperation between the two countries. Follow CARGOCONNECT for more such updates.
V.O. Chidambaranar Port Authority (VOCPA) in Thoothukudi, Tamil Nadu, has become the first Indian port to partner with H2Global to facilitate green hydrogen export corridors between India and Europe. The strategic Memorandum of Understanding (MoU), marks a major step toward integrating India into the global green hydrogen supply chain and strengthening maritime trade links with European energy markets. The collaboration between VOCPA and H2Global, represented by the H2Global Foundation and Hintco GmbH, aims to establish the infrastructure, logistics frameworks and commercial mechanisms required for large-scale exports of green hydrogen and its derivatives, including green ammonia and e-methanol. The partnership will also explore long-term offtake arrangements and the development of sustainable maritime fuel ecosystems that support global decarbonisation goals. For the logistics and shipping sector, the agreement signals the emergence of a new clean-energy trade corridor connecting India’s southern coastline with Germany and broader European markets. As demand for renewable fuels accelerates across Europe, ports are increasingly being viewed as critical nodes in the hydrogen value chain, requiring specialised storage, handling and transportation infrastructure. The partnership is expected to catalyse investments in dedicated hydrogen and ammonia terminals, storage facilities and associated maritime logistics capabilities at the port. The development aligns with India’s National Green Hydrogen Mission, which targets the creation of a robust domestic hydrogen ecosystem and positions the country as a major exporter of green fuels. VOCPA has already emerged as a key player in this transition. The port was recognised as a Green Hydrogen Hub under the mission and commissioned a port-based green hydrogen pilot project in 2025, making it one of India’s pioneering maritime facilities in renewable hydrogen production and application. Industry observers believe the agreement could strengthen India’s competitiveness in the global green hydrogen market by leveraging Tamil Nadu’s abundant wind and solar resources, strategic maritime location and growing industrial base. For supply chain stakeholders, the initiative underscores the increasing convergence of clean energy, port infrastructure and international trade. As global energy supply chains undergo rapid transformation, the VOCPA-H2Global partnership positions India not only as a producer of green hydrogen but also as a critical logistics hub in the emerging international clean fuel economy. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
