The Xin Fei Zhou, a Chinese container ship, hit the wall of the newly designed lane of the Panama Canal, according to a Canal Authority official on Monday.
The ship is now docked outside the canal and repairs are being done to the big damage on its hull. Two other ships had the same fate after the canal's opening a month ago.
The Panama Canal Authority is still conducting an investigation on the incident.
On June 26, the expansion project was inaugurated, and allowed more vessels to pass through. The project's cost is $5.4 billion.
The expansion was criticized by members of the shipping industry, who said that the Canal's new lane was flawed and will put vessels at risk.
Lycaste Peace was the first ship that had a collision in the canal. The ship is an LPG tanker that ripped a fender while passing through.
Another vessel, the Cosco Shipping Panama, a container ship, also damaged its fenders. Offcials from the canal authority said this incident was "normal."
According to a study made by the International Transport Workers' Federation, the dimensions of the new locks are too small for the size of the vessels. This meant that the margin of error was too small.
The study was commissioned after concerns came from the federation's members. Many workers in the shipping industry were questioning the canal's safety. The Canal Authority dismissed the results of the study.
Though accidents are common among shipping vessels, the incident with the three ships raised questions.
The Panama Canal is a manmade waterway that connects the Atlantic Ocean to the Pacific Ocean. It spreads to 77 kilometers. It is a key passageway to all maritime vessels and plays a very important role in international trade.