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Market Matters Blog 09/02 10:03
Panama Canal Authority Adopts New Transit Restrictions
The Panama Canal Authority announced via an Advisory to Shipping temporary
modifications to the locks' transit capacity.
Mary Kennedy
DTN Basis Analyst
The Panama Canal Authority (PCA) on Aug. 20, 2026, announced temporary
modifications to the locks' transit capacity including adjustments to its daily
auctions, amid reduced precipitation in the canal watershed.
Effective Sept. 3, 2026, the number of daily slots available at the
Neopanamax Locks will be adjusted to nine, and the daily slots available at the
Panamax Locks will be 25. Meanwhile, the number of daily slots accessible at
the Panamax Locks will be 23, as of Sept. 15, 2026, noted the Aug. 20 Advisory
to Shipping.
"Despite the arrival of the rainy season in Panama, and the water-saving
measures implemented by the Panama Canal to mitigate the adverse effects of the
El Nino event, current watershed conditions, including below-expected
precipitation in the Canal watershed, require additional action to support the
long-term sustainability of transit operations," said PCA in a news release.
The PCA had announced on Aug. 5, 2026, that effective Aug. 26, 2026, the
maximum authorized draft for vessels transiting the Neopanamax Locks will be
reduced to 48 feet (14.63 meters). A further adjustment will take effect on
Sept. 3, lowering the maximum draft to 47.5 feet (14.48 meters). However, on
Aug. 20, 2026, PCA said, "Based on the current level of water in Gatun Lake and
the latest weather projections, the Panama Canal will postpone until Sept. 2,
2026, the maximum authorized draft of 14.63 meters (48.0 feet) TFW in the
Neopanamax Locks, scheduled to become effective on Aug. 26, 2026. And the
maximum authorized draft adjustment of 14.48 meters (47.5 feet) TFW, scheduled
to become effective on Sept. 3, 2026, will be postponed until Oct. 1, 2026."
PCA also announced on Aug. 28, 2026, temporary modifications to its Transit
Reservation (Booking) System for Neopanamax vessels aimed at providing
customers with greater flexibility, improving the distribution of available
capacity across market segments, and encouraging the efficient use of water
resources.
"The adjustments reflect the Panama Canal's continued commitment to its
customers and to providing a safe, reliable, and efficient service. Developed
following careful consideration of customer feedback and current operating
conditions, the measures are designed to respond more effectively to customers'
evolving needs while preserving the predictability and operational standards on
which the maritime industry relies," noted the news release.
The changes will take effect Aug. 30, 2026, for booking dates beginning
Sept. 13, 2026. Here is more detailed information in the Aug. 28 Advisory to
Shipping:
https://pancanal.com/wp-content/uploads/2026/04/ADV-31-2026-Transit-Reservation-
Booking-System-Rule-modifications.pdf.
While the water deficit in the canal watershed continues, PCA said customers
are strongly encouraged to plan transits through the reservation system. "A
confirmed reservation remains the only means of guaranteeing a specific transit
date. Vessels arriving without a reservation may experience delays depending on
demand and available capacity."
Freight Waves announced on Aug. 31, 2026, that "the Panama Canal set a new
single-trip toll record amid looming traffic restrictions and global pressure
on energy supplies. Canal officials confirmed that South Korea's SK Gas Ltd.
bid $5.3 million for an auctioned Panama Canal transit slot for the liquefied
petroleum gas carrier G. Spirit on Sept. 1, the highest reported price ever for
the waterway linking the Pacific and Atlantic oceans."
Despite the drought conditions affecting the Canal due to El Nino, shipping
has been disrupted because of the Middle East conflict and the closure of the
Strait of Hormuz, causing shippers to look for other alternatives. Time will
tell if there will be another new record in the Panama Canal transit auction.
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on social platform X @MaryCKenn
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