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By: Edward Graham Sebbie
The Panama Canal is easing restrictions that have slowed global shipping for months, following improved water levels in Gatun Lake.
The Panama Canal Authority announced in a shipping advisory on September 29 that daily transits through the Neopanamax locks will increase to 10 vessels starting October 15. That will bring total daily transits across both the Neopanamax and Panamax locks to 33.
At the same time, the maximum authorized draft for vessels using the Neopanamax locks has been increased to 14.94 meters, or 49 feet, effective immediately until further notice. The adjustment restores nearly full loading capacity for large container ships, LNG carriers and other vessels that use the expanded locks. The full authorized maximum is 50 feet.
According to the Authority, the decision is based on near-average rainfall recorded in September across the Canal watershed, current and projected water levels in Gatun Lake, and water-saving measures introduced at the locks.
Even with the improvement, the Authority says a water deficit still persists in the watershed. It has therefore cautioned that the Transit Reservation System remains the only guarantee for a transit date, and vessels arriving without a booking could face indefinite delays.
The new measures reverse a temporary cut that reduced total daily transits to 32 from September 15 and lowered the Neopanamax draft limit to 14.63 meters. The cuts were part of conservation steps taken after water levels dropped sharply due to the El Nino weather pattern.
The restrictions hit shippers hard. Carriers reported challenges in securing slots, reduced cargo carrying capacity, and higher costs from priority auctions and alternative routings. In mid-September, MSC introduced a $149 per TEU surcharge while CMA CGM imposed $500 per TEU on Asia to US East Coast and Gulf cargoes transiting the Canal.
To make the added capacity usable, the Authority is also changing booking rules from September 29 for transit dates on or after October 15. Limits on the number of slots a customer can be awarded per day or per week will be removed, and bookings for consecutive dates will now be permitted.
The 10 daily Neopanamax slots will be allocated through special allocations, the LoTSA and NetZero programs, designated reservation periods, and a daily auction. Full container ships will get at least six slots per day and LPG carriers at least three, while LNG, vehicle carriers, bulk carriers and other segments will keep minimum weekly allocations based on customer rankings. Any slots left unallocated will be reassigned to other vessel segments.
