Panama City, June 3, 2025
By Maria Kalamatas | The Logistic News
Section: Land
With water levels in the Panama Canal at historic lows, logistics operators are being forced to pivot — and Panama’s overland transport corridors are feeling the strain.
Since the canal authority cut vessel transits to cope with drought, a growing number of shipping companies are unloading cargo at the Atlantic or Pacific ports and trucking containers across the isthmus. The result: overloaded highways, congested rail lines, and mounting delays.
“The number of containers on our main roads has doubled in just six weeks,” said Jorge Martínez, head of freight operations at TransPan Logistics. “Our fleet is stretched, and we’re running behind schedule almost every day.”
A Sudden Shift from Sea to Land
Panama’s famed canal usually moves over 5% of global trade, but with transit limits now tightened, overland transport is taking center stage. Trucks and trains are becoming essential to keeping supply chains flowing — even as infrastructure struggles to keep up.
“We’re doing our best, but demand has exploded overnight,” said Carla Espinoza, chief logistics planner at Panama Rail Co. “Freight trains are full, and slot availability is down to hours.”
On the roads, bottlenecks are building outside transloading hubs. Drivers report wait times of several hours, especially along the Pan-American Highway, where key stretches weren’t designed for sustained high-volume traffic.
Infrastructure Under Strain
The speed of the shift has revealed critical weak points. Roads are wearing out faster. Rail maintenance schedules are behind. Bridge inspections are being rushed to avoid potential incidents.
“We weren’t prepared for this level of traffic,” said Luis Herrera, an infrastructure engineer at Panama’s Ministry of Transport. “What we’re seeing now is a race between supply pressure and maintenance capability.”
The government has announced emergency funds for patching and repairs but admits long-term upgrades will take time — and face budget constraints.
Business Costs Rising
Delays are already pushing costs higher for manufacturers, exporters, and freight forwarders. Some shippers are being forced to reroute cargo via Colombia or even the US Gulf, adding days and thousands of dollars to delivery schedules.
“This isn’t just about Panama,” warned Dr. Elena Rodríguez, a trade economist at the University of Central America. “If the canal remains limited, regional logistics flows could be reshaped — permanently.”
While overland transport is providing a stopgap, few believe it’s sustainable. Energy use, emissions, and efficiency all suffer when containerized cargo moves by road instead of ship.
As stakeholders call for faster infrastructure support and long-term climate resilience planning, one thing is clear: Panama’s roads are now part of a global trade puzzle they weren’t built to solve.
✎ Maria Kalamatas
Senior Correspondent – The Logistic News
Section: Land
