Custom Breadcrumbs needs a hook to work with CTools.

The menu system does this automatically, it's not a Panels thing at all; try the custom breadcrumb module, it may be able to help you.

you forgot the link ;-)

custom breadcrumbs module

I am struggling with this issue also. Custom Breadcrumbs works on Node Type. The problem is that Panels are not a Node. So, if I have a Panel defined that I want to live, say, three levels deep in a site navigation, I don't know of a way to categorize, tag, or assign a Custom Breadcrumb. Any guidance would be appreciated.
-k²

Same issue. I seem to be getting random breadcrumbs on panels (ie Home > photos > blogs). Can someone explain how to use custom breadcrumbs to get around this (or any other solution?).

thanks

Total hack solution:

change the line in your page.tpl.php file where the breadcrumb is printed to

if (arg(0) == 'PANELNAME'){ print "Home » " . arg(1); }else{ print $breadcrumb ;}

This works if you have urls like /PANELNAME/ARGUMENT ...

Not a very generalized or scalable solution, but it will work in a pinch for some situations....

Possibly related: #516704: Breadcrumb support for delegated (panel) pages

#516704 requires a hook. I'll make this the issue for it.

I added this in includes/context-task-handler.inc:

        drupal_alter('ctools_render', $info, $page, $args, $contexts, $task, $subtask);

Not only can you respond to the hook and add the breadcrumb there (Please, only if $page is TRUE) you can alter the output!