structural:expansion
Competition

The canal faces increasing competition from other quarters. Because canal tolls have risen as ships have become larger, some critics have suggested that the Suez Canal is now a viable alternative for cargo between Asia and the US East Coast. The Panama Canal, however, continues to serve more than 144 of the world's trade routes and the majority of canal traffic comes from the "all-water route" from Asia to the US East and Gulf Coasts.

An alternative route through Nicaragua and Lake Nicaragua has been proposed. On 15 June 2013, Nicaragua awarded the Hong Kong-based HKND Group a 50-year concession to develop a canal through the country. In February 2018, analysts widely viewed the project as defunct, though the head of the project insisted work was on-going. In April 2018 HKND Group closed its offices, leaving no forwarding address or telephone numbers to be reached.

The increasing rate of melting of ice in the Arctic Ocean has led to speculation that the Northwest Passage or Arctic Bridge may become viable for commercial shipping. This route would save 9,300 km (5,800 mi) on the route from Asia to Europe compared with the Panama Canal, possibly leading to a diversion of some traffic to that route. However, such a route is beset by unresolved territorial issues and would still hold significant problems owing to ice.