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%u2022 Due diligence on ownership and ship identification %u2022 Due diligence on ship identity and eligibility checks %u2022 Information sources and information sharingPanama Canal meets rising demandThe Panama Canal recorded an increase in transits and tonnage during the first half of fiscal year 2026, along with greater demand for its reservation system, reflecting the evolving dynamics of international maritime trade.These developments were shared during a market update hosted by Anna Milne, Managing Director of Emerging Markets Corporate Research at Bank of America Merrill Lynch. The virtual briefing featured Panama Canal Administrator Dr Ricaurte V%u00e1squez Morales, Deputy Administrator and Chief Sustainability Officer Ilya Espino de Marotta, and Vice President of Finance V%u00edctor Vial. Together, they presented the results for the first half of fiscal year 2026 and provided updates on port development initiatives, a gas pipeline, a logistics corridor, and the R%u00edo Indio project.%u201cAmid all the geopolitical complexities in the world today, the shifts and various factors affecting international trade, the Panama Canal remains open and reliable. With water levels currently at optimal levels, we are accommodating an ever-growing volume of traffic%u201d, noted Administrator Ricaurte V%u00e1squez Morales.During the first half of fiscal year 2026 (October 2025 through March 2026), the Panama Canal recorded 6,288 transits, an increase of 224 transits y/y. Over the same period, 254 million PC/UMS (Panama Canal Universal Measurement System) tonnes moved through the waterway, which translates to approximately 5% more than the 243 million tonnes recorded in the same period of the prior fiscal year.Regarding the uptick in reservations and the results of certain slot auctions, which are part of the services offered by the Panama Canal, Vice President of Finance V%u00edctor Vial clarified that while some vessels have paid over $1 million at auction, these figures reflect only temporary conditions driven by heightened demand.The Panama Canal offers the maritime industry several advance reservation mechanisms for scheduling transits, including the Long-Term Slot Allocation (LoTSA) programme and a dedicated booking system for Liquefied Natural Gas (LNG) vessels. All vessels are required to hold a reservation before transiting.For vessels that do not book in advance, the canal offers options such as last-minute reservations and an auction mechanism, with three to five slots made available through auction each day.According to Vial, the average auction price before the Middle East conflict ranged between $135,000 and $140,000. Following the outbreak of the conflict, that average climbed to approximately $385,000 between March and April.Vial also noted that since the majority of vessels book their transits in advance, there is no queue, which provides greater certainty for users. Auctions are conducted using specific time slots already built into the Panama Canal%u2019s schedule, with no impact on vessels holding confirmed reservations or on the established transit order.Japanese shipyards %u201csold out%u201d through 2029Japanese shipyards are operating at full capacity, as according to data from the Japan Ship Exporters%u2019 Association (JSEA), there are no available shipbuilding slots until 2029.This practically means that shipyards in Japan have secured orders for the next three and a half years. Based on JSEA data, in terms of GT, 73% of the orders secured by Japanese shipyards relate to bulk carriers, 17% to containerships, and 10% to gas carriers and other tankers. Furthermore, their share of global shipbuilding orders last year (in GT terms) stood at 9%, compared to 19.6% for South Korea and 66% for China.In recent years, the competitiveness of Japanese shipyards has indeed been significantly affected, prompting the domestic industry to implement revitalisation measures. In this context, mergers and consolidations have taken On the seafront110 NX