Federal Maritime Commission Chairman Daniel B. Maffei and Commissioner Louis E. Sola travelled to Panama in July to assess how the conditions at the Panama Canal are affecting U.S. shippers. Chairman Maffei, Commissioner Sola, along with FMC Chief of Staff, Mary T. Hoang, and FMC General Counsel, Chris Hughey, were briefed on how Panama is managing the Panama Canal through a period of reduced operations and the steps being taken to insulate the waterway from future disruptions.

Meetings were held with the most senior Panamanian government and Canal Authority officials to discuss current Panama Canal operations and to better understand how inefficiencies in the Panama Canal operations may result in conditions unfavorable to U.S. shipping. Recent increased rainfall is providing a short-term solution and Chairman Maffei and Commissioner Sola were repeatedly assured that the Republic of Panama and the Panama Canal Authority are committed to pursuing longer term solutions.

The Panama Canal is a crucial waterway for both U.S. export and import commerce, including energy. Reduced rainfall in 2023 resulted in some ships not being able to transit the Panama Canal as well as fewer transits in total. American ocean-linked supply chains rely on a Panama Canal capable of operating normally at all times.

The FMC delegation met with President Jose Raul Molino and his senior advisors to discuss maritime policy. Meetings with Jose Ramón Icaza Clément, Minister of Canal Affairs at the Panama Ministry of Canal Affairs, Ricaurte “Catin” Vasquez Morales, Administrator of the Panama Canal Authority, Luis Roquebert, Administrator of the Panama Maritime Authority and Juan Carlos Navarro, Minister of Ambiente (Environment) also yielded meaningful discussions about the current obstacles hindering the Panama Canal’s maximum potential and long-term solutions being considered to combat those issues.

The Commission delegation also made an onsite visit to the Miraflores Locks to observe the Panama Canal in operation.

“In 1914, the Panama Canal revolutionized trade and navigation in the Western Hemisphere.  For more than a century it has made it easier and more economical for ships to transit from one ocean to the other. It has been an asset of such dependability that it is easy to forget what an engineering feat it was to build this route and the effort necessary to maintain it. It is clear from our meetings that the Panamanians want to maintain the viability of the Panama Canal and are identifying what options they have for improving its resiliency and reliability.   Rainfall has alleviated some of the most immediate challenges plaguing the Panama Canal, but waiting to implement more permanent solutions based on new infrastructure would be an opportunity lost,” said Chairman Maffei.  

The trip took place July 29 through August 1, 2024. 

Chairman Daniel B. Maffei is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.