by Manal Barakat, SeaNewsEditor

The Panama Canal Authority (ACP) has announced a new ten-year strategy in response to anticipated changes in global trade patterns.

The ACP expects average daily transits to decrease to 33 next year, below the canal's capacity of 36, as the surge in imports from Asia driven by US tariffs subsides.

Panama Canal Administrator Ricaurte Vásquez Morales highlighted that the frontloading of goods ahead of new tariffs, primarily affecting Chinese products, had temporarily boosted container traffic this year.

Vásquez believes that this trend has kept US ports busy during the summer, but he warns that this effect is temporary. Once inventories are replenished, demand is expected to normalise, leading to reduced traffic next year.

However, Vásquez noted that volatility in trade routes, geopolitical tensions, and challenges to globalisation have made long-term forecasts less reliable.

To prepare for future challenges, the ACP has opted for a ten-year strategic plan instead of a 20-year roadmap. The strategy focuses on two main pillars: securing water supplies for canal operations and human consumption, and pursuing growth through business diversification and logistics development without increasing water usage.

Furthermore, investments exceeding USD 8 billion in major projects will be a key part of the plan. These projects encompass the Río Indio Reservoir, which aims to provide water for over one million Panamanians while enhancing the reliability of canal operations.

Additionally, the Corozal Port on the canal's east bank will be integrated into a land-based logistics hub connected by road and rail.