In January, the Panama Canal saw a significant recovery in vessel traffic, increasing nearly 50% year-on-year, despite US President Donald Trump’s recent threats to take control of the canal from China. Weather conditions at the canal have improved, alleviating some climate-related draught restrictions that had previously limited daily commercial vessel transits.
A total of 632 commercial vessels transited the canal in January, with container ships, roll-on/roll-off (ro-ro) vessels, and LNG ships among the prominent types. Despite the rise in traffic, including a 50% year-on-year increase in liquid bulk cargo ships, the canal’s overall vessel traffic remains below the 2019-2022 average. The US, which remains the largest user of the canal, accounts for 52% of the total traffic, while China follows with a quarter of that amount.
Amid this growth, Trump reignited a longstanding political debate by claiming that the US “gave” the canal to Panama, only for it to fall into “the wrong hands” with China’s involvement. He emphasized that the US had invested heavily in the canal’s construction and indicated plans to reclaim control, citing Panama’s recent efforts to remove Chinese language signs as a sign of the canal’s shifting allegiances.
