AGP Executive Report

Panama Canal Budget & Draft Rules: The Panama Canal Authority submitted a US$5.56B FY2027 budget to Cabinet, projecting US$3.61B to Panama’s treasury, and kept the Neopanamax maximum draught at 48ft after delaying a planned October cut to 47.5ft, aiming to protect voyage planning as drought and El Niño risks linger. Canal Leadership: Engineer Ilya Espino de Marotta officially took over as the Canal’s first woman Administrator for 2026–2033, with water supply and efficiency among her priorities. Shipping Under Fire: A Panama-flagged tanker, New Andros, was hit by a drone in Iraq’s territorial waters, starting a fire that was extinguished; the incident comes as US-Iran tensions push oil prices back above $100 and more vessels report attacks across the Gulf. Food Security Shock: UN agencies warn a potential “super El Niño” could threaten food security across Latin America, with up to 16 million people at risk as drought and crop damage intensify. SME Hiring Pulse: In Puerto Rico, SMEs are driving hiring optimism for Q4 2026, with trade and logistics leading demand.

Panama Canal Operations: The ACP postponed a planned October cut to the Neopanamax draft, keeping the 48ft limit in place after reviewing Gatun Lake levels and weather forecasts, while drought-driven limits still cap Neopanamax transits at nine slots daily and Panamax availability is set to fall. Leadership at the Canal: Ilya Espino de Marotta officially took over as the Panama Canal’s first woman administrator, pledging efficiency, transparency and water-security focus as the waterway navigates drought, reliability and expansion priorities. Maritime Rules Under Strain: Eighteen shipping powers warned that global maritime rulemaking is eroding into a two-tier system, citing shadow fleets, wars and drought impacts—including Panama Canal disruptions. Regional Connectivity Push: Colombia’s president revived plans for an Atlantic–Pacific link through Chocó, potentially via canal or rail corridor, as part of a broader “Marshall Plan” for infrastructure and jobs. Food & Water Pressure from El Niño: WFP warned El Niño could push up to 16 million more people into food insecurity across Latin America, while Sri Lanka reported drinking-water shortages affecting over 115,000.

Panama Canal Leadership & Water Crisis: Ilya Espino de Marotta took office as the Panama Canal’s first woman administrator, inheriting a drought-tightened waterway where rainfall is running well below normal and daily transits have already been cut (36 to 34, with 32 due Sept. 15), with further reductions possible if El Niño persists; her top priority is the $1.5–$1.6 billion Río Indio reservoir to protect both canal operations and drinking water. Maritime Supply Chain Pressure: Drought is also hitting global shipping arteries, and insurers warn low inland water levels are becoming a business continuity risk that can ripple into ports, warehouses, and land transport. Panama Business & Industry Moves: Win Systems is selling its gaming division to Primero Games, bringing 3,000+ installed gaming positions across markets including Panama. Local Disruption: A vandalized electrical grid at a Capira school put about 1,500 laying hens at risk and triggered losses above $50,000. Regional Trade Ambition: Colombia’s Chocó plan revives a long-stalled Atlantic–Pacific link idea near Panama’s scale, weighing a canal vs. railway.

Panama Canal Water Crunch: New administrator Ilya Espino de Marotta warned El Niño could force more transit cuts after the daily cap fell from 36 to 34 and may drop again to 32 from Sept. 15, with further reductions possible by early 2026 if drought persists. Canal Leadership & Expansion: Espino de Marotta officially took office Monday, with the Río Indio reservoir project and broader logistics/energy plans front and center as the canal balances ship capacity with drinking-water needs for millions. Port Transparency Move: Panama’s Maritime Authority reversed a 10-year restriction on public access to port concession and maritime licensing information, signaling a shift as the country reshapes major port operations. Agri Shock in Capira: A vandalized electrical grid at a Capira school put about 1,500 laying hens at risk and drove losses above $50,000. Regional Trade Links: Ecuador and Panama trade ties remain active across goods, services, logistics, investment, and tourism, while Ecuador reported record exports but faster-rising imports. Conservation Finance in Darién: Indigenous Wounaan and Emberá-Wounaan communities launched biodiversity monitoring to support future biodiversity credits and conservation funding.

Panama Canal Leadership: Engineer Ilya Espino de Marotta takes the helm as Panama Canal Administrator on Sept. 7 for a seven-year term, with a clear focus on executing the $1.6bn Río Indio project and tackling water-driven reliability pressures. Canal Reliability & Shipping Costs: With El Niño-linked drought tightening operations, the Canal has warned of possible further transit cuts, while global routes face added disruption from Middle East conflict and longer detours. Port & Trade Policy: Panama’s Maritime Authority has repealed long-term restrictions on public access to information tied to port concessions and maritime licensing, as the country prepares to reshape major port operations. Energy & Shipping Markets: LNG freight remains under pressure while LPG rates firm on tighter availability and Canal restrictions; Dorian LPG also ordered three dual-fuel Panamax VLGCs for about $345m. Agro & Local Supply: IMA opened low-cost food fairs in Chiriquí and Panama Oeste, aiming to improve access and inventory ahead of longer delivery realities. Biosecurity: The US released its billionth sterile screwworm fly from facilities in Mexico and Panama as the region fights a pest that can devastate livestock.

Panama Canal Leadership: Engineer Ilya Espino de Marotta takes over as Panama Canal administrator on Monday, becoming the first woman to lead the authority, with Ruben Pérez Pinzón named temporary deputy administrator. Canal Capacity Under El Niño: The ACP is progressively cutting daily transits due to drought linked to El Niño, while also postponing a planned Neopanamax draft reduction to keep 48-foot limits in place for now. Logistics Pressure: Asia port congestion is dragging down container schedule reliability, pushing up east Asia/China-to-US container rates as tanker rates ex-US Gulf soften. Aviation Investment: Tocumen Airport will invest about $306.75M in two mega-projects—Terminal 2 expansion and airfield modernization—to add aircraft positions and upgrade runways/taxiways. Banking Deal: Davivienda Group says its Panama integration brings nearly $80B in assets and a $60B+ loan portfolio, reinforcing Panama’s role as a regional hub. Security & Crime: Police and prosecutors point to organized crime and loan-sharking networks after a deadly attack in San Miguelito involving a pregnant woman. Energy/Trade Risk: Analysis flags how Iran-related disruptions are reshaping oil routes and raising costs for importers, with longer, more dispersed supply lines. Industry & Culture: Miss Universe Panama 2026 goes to Gabriela Lineth González del Valle, with the pageant held at Roberto Durán Arena.

Canal Leadership: Panama Canal Authority named Ilya Espino de Marotta as administrator starting Sept. 7, with Rubén Pérez Pinzón stepping in as temporary deputy administrator to keep operations steady. Canal Capacity & Drought: As El Niño deepens drought, the ACP is progressively cutting daily transits (36 to 34 early September, then 32 from Sept. 15) and has postponed a planned Neopanamax draft reduction, keeping the 48-foot limit for now. Shipping Disruptions: Ocean carriers are rerouting and reshuffling schedules to dodge Panama Canal constraints and Asian port congestion, adding friction for trans-Pacific freight. Freight Market Pressure: Reports point to tighter capacity and higher costs as on-time container shipping slips and drayage strain rises, with ports like Los Angeles/Long Beach seeing worse dwell times. Panama Business & Growth: UBS raised its Panama growth outlook to above 5% for 2026, citing improving confidence, construction recovery, tourism, and Canal-linked activity. Local Governance: Panama National Assembly budget talks confirm VIP office privileges will remain for deputies, with Shirley Castañedas defending the approach. Trade & Enforcement: Customs at Las Américas seized undeclared cash from a Colombian passenger carrying US$600,700 plus pesos, sending the case to prosecutors.

Panama Canal Drought Response: The Canal Authority says daily transits will be progressively cut from 36 to 34 in early September, then to 32 from Sept. 15, as rainfall and lake inflows stay well below average—raising new planning pressure for shippers. Neopanamax Draft Update: A planned Oct. 1 reduction in maximum Neopanamax draft (to 47.5 feet) has been postponed, keeping the current 48-foot limit for now while Gatun Lake levels and forecasts are reviewed. Canal Capacity Rules: The ACP also moved to adjust booking and slot access systems to improve flexibility and equitable transit—aimed at smoothing demand during tighter operating conditions. Shipping Reroutes: Ocean carriers are already changing routes and schedules to avoid Panama constraints, with some cargo shifting toward West Coast options or bypassing the canal entirely. LPG Fleet Investment: Dorian LPG ordered three dual-fuel Panamax VLGCs from Hanwha Ocean (about $345M), noting the Strait of Hormuz disruption and Panama lock compatibility as key drivers. Local Enforcement: Customs at Las Américas seized $600,700 in undeclared cash from a Colombian passenger, referring the case to prosecutors. Economy Watch: UBS raised its 2026 Panama growth outlook to above 5%, citing improving confidence, construction recovery, tourism, and Canal-linked activity.

Canal Drought Shock: The Panama Canal is cutting daily transits as El Niño-driven drought deepens, with early-September limits dropping from 36 to 34 ships and mid-month down to 32, while authorities also postponed a planned Neopanamax draft cut to keep 48 feet for now. Shipping Cost Pressure: Ocean carriers are rerouting and reshuffling schedules to dodge tighter canal capacity and worsening Asian port congestion, and MSC revised its Panama Canal surcharge to US$100 per TEU from October 2026. LPG Fleet Moves: Dorian LPG ordered three dual-fuel Panamax VLGCs for about $345M, citing the Hormuz disruption and Panama Canal slot costs as the market keeps bending. Local Governance & Business: President Mulino is weighing Bill 226, which expands retiree discounts, after business groups warned it may be hard to fund. Industry Policy: Panama’s IMO ambassador backed a proposal to remove GHG pricing in favor of fuel-intensity targets, as the Net-Zero Framework negotiations resume. Energy Infrastructure: Panama completed its acquisition of the Petroterminal de Panamá pipeline, buying the remaining 41% stake for $191.7M.

Canal Leadership & Operations: The Panama Canal Board named Rubén Pérez Pinzón temporary deputy administrator effective Sept. 7, as the administrator transition approaches. Shipping & Trade Costs: With drought deepening, the Canal imposed its first 2026 transit restriction, cutting daily crossings to 34 ships (then 32 on Sept. 15) and tightening drafts—prompting higher transit costs and forcing carriers to reroute. Freight Market Pressure: MSC revised its Emergency Panama Canal Surcharge to US$100 per TEU from Oct. 1, 2026, citing reduced capacity. Energy & Logistics: Panama completed full acquisition of the oil pipeline Petroterminal de Panamá by buying the remaining 41% stake for $191.7m, strengthening control of the trans-isthmian corridor. Maritime Fleet Investment: Dorian LPG ordered three dual-fuel Panamax VLGCs from Hanwha Ocean for about $345m, with deliveries in 2030, citing flexibility for Panama Canal locks. Industry Tech & Services: Primero Games acquired Win Systems’ gaming division, adding an installed base of 3,000+ electronic-roulette positions across Mexico, Peru, Colombia, Puerto Rico, and Panama.

Panama Canal Drought Shock: The Panama Canal Authority has tightened operations again, cutting daily transits to 34 ships (from 36) and reducing vessel draft limits as El Niño deepens water shortages, with further drops to 32 on Sept. 15—raising transit costs and adding uncertainty for shipping schedules. Canal Fees Update: MSC revised its Emergency Panama Canal Surcharge to a flat US$100 per TEU effective Oct. 1, 2026, citing ongoing drought-driven capacity limits. Energy & Logistics: Panama completed its acquisition of the remaining 41% stake in oil pipeline operator Petroterminal de Panamá for $191.7 million, bringing full control of the trans-isthmian corridor. Shipping Market Pressure: Global container shipping reliability fell sharply in Asia in July, with major ports hit by congestion and weather disruptions, while rates stayed mixed across key lanes. Regional Security & Trade Disruption: U.S. Marines sank a second floating refueling vessel tied to Ecuador’s Los Choneros network in the Eastern Pacific, targeting the logistics support behind drug trafficking. El Niño Outlook: UN and WMO warnings say El Niño is likely to persist through early 2027 and could intensify further, with knock-on effects for freight and regional water-dependent infrastructure.

Canal Water Crunch: Panama Canal Authority imposed its first 2026 transit restriction due to El Niño-driven drought, cutting daily crossings to 34 ships (from 36) and tightening draft limits as rainfall deficits deepen. Shipping Reliability: New data shows container shipping on-time performance fell sharply in July, with major Asian ports hit hardest by congestion and weather disruptions. Energy Logistics: Panama completed full acquisition of Petroterminal de Panamá, taking 100% control of a trans-isthmian pipeline system that can move about 10 million barrels a month outside the canal. Construction Contract: Herrera’s Divisa prison complex was awarded to Riga Services SA for $181.1 million, with local questions focused on cost and location. Tech & Finance: Panama-based crypto exchange Gate launched an “Event Contracts Builder” for prediction markets, aiming to let businesses embed forecasting tools into their own apps. El Niño Outlook: UN and WMO forecasts warn El Niño may intensify into 2027, raising risks for Panama’s water and freight planning.

Panama Energy & Logistics: Panama completed the $191.7m buyout of the remaining 41% of Petroterminal de Panamá, taking full control of the 131-km trans-isthmian oil pipeline linking Chiriquí Grande (Caribbean) and Charco Azul/Charco Azul area on the Pacific, a system that can move about 10m barrels a month and gives the state more control over interoceanic hydrocarbon flows. Maritime & Trade Policy: The Panama Canal loosened Neopanamax booking rules, letting customers secure more than one reservation per booking date and across consecutive dates under revised limits, while keeping vessel swaps tied to capacity rules. Climate Risk for Industry: UN and WMO warnings say El Niño is strengthening into a “very strong” event, with ocean heat and extreme weather risks that could disrupt freight and water-dependent operations. Global Shipping Demand: Freight updates point to tighter air capacity for AI and semiconductor exports from Asia, while ocean rates stay supported by port congestion and routing limits even as some demand softens. Agriculture & Supply Chains: Panama’s IMA said permanent stores will close Friday Sept. 4 for IT platform upgrades, with agricultural fairs running Thursday Sept. 3 with low-cost items. People & Business: Maersk named Roberta Duarte as Chief People Officer effective Nov. 1, as the shipping group continues reshaping leadership for its ocean and logistics operations.

Panama Canal Operations: The Canal has loosened Neopanamax booking rules and temporarily adjusted reservation limits to boost flexibility for customers across the same and consecutive booking dates, while still managing water availability and keeping weekly slot distribution structured by market segments. El Niño & Freight Risk: A very strong El Niño is expected to raise volatility for freight networks, with compounding disruptions across sea, land, and air—an issue that matters for Panama’s logistics gateway role. Local Business & Policy: President José Raúl Mulino will meet retiree groups and the Chamber of Commerce, Industries and Agriculture (CCIAP) to work out implementation formulas for expanded retiree discounts after legislative approval sparked problems. Agriculture & Trade Support: Panama’s IMA permanent stores will close Friday Sept. 4 for IT platform upgrades, with agricultural fairs continuing Thursday Sept. 3 under low-cost, ID-required purchasing rules. Maritime Talent & Industry Culture: UK Merchant Navy Day honors seafarers for service and mentoring—highlighting the human side of keeping global trade moving.

Panama Canal Finance: The Canal Authority says FY2027 revenue will rise 6.6% to $5.56B, with $3.61B directly to the national treasury, assuming 10,750 high-draft transits and tougher water conditions tied to El Niño. Canal Operations: To manage drought risk, the waterway is tightening draft and transit rules, including a planned cut to 32 daily transits from Sept. 15. Trade & Security Diplomacy: President Mulino will visit Ecuador on Sept. 4 to discuss investment, trade, and security cooperation against transnational organized crime. Construction Materials: Cemento Panam (Grupo Estrella) expands in Central America by acquiring Cementos Fortaleza’s Acajutla plant in El Salvador, adding 350,000 tons of annual capacity. Agri Risk: Growers are battling Cavendish banana losses linked to Panama disease TR4, underscoring how Panama disease pressure keeps spreading across major producing regions. Logistics Pulse: A freight market update flags AI and semiconductor exports tightening air capacity in Asia while weather and congestion keep ocean rates firm despite softer demand.

Canal Finance: Panama Canal Authority expects $5.56B revenue and $3.61B direct treasury contribution for FY2027, even as it braces for tighter water conditions and a possible strong El Niño. Maritime Operations: The Canal is also moving to adjust Neopanamax/booking rules and reduce daily transits as drought risk grows, raising the odds of costlier, slower freight—especially for Asia-linked imports. El Niño Watch: NOAA forecasts a >90% chance of a very strong El Niño this fall/winter, with Panama already taking water-conservation steps. Port & Trade Governance: President Mulino questioned why the Maritime Authority restricted public access to port concession and maritime administrative information until 2036, as the AMP seeks operators for major ports. Construction Materials: Cemento Panam (Grupo Estrella) expands in Central America by acquiring Cementos Fortaleza’s Acajutla plant in El Salvador (350,000 tons/year), adding a third market alongside Panama and the Dominican Republic. Agriculture Risk: Growers are fighting Panama disease TR4 as Cavendish farms face new detections, underscoring supply-chain risk for a fruit variety that dominates global production.