Panama Canal Restrictions Tighten

Further restrictions at the Panama Canal are set to put additional pressure on container shipping capacity, with reduced vessel draughts and fewer daily transits expected during September and October.

From 2 September, the maximum permitted draught for Neopanamax vessels will fall to 14.63 metres, before reducing again to 14.48 metres from 1 October. Daily canal transits are also expected to reduce from 36 to 34 on 3 September, and then to 32 from 15 September, although these figures remain subject to change.

The potential impact:

• Around 45% of Neopanamax transits recorded in July could be affected by the new draught restrictions.

• Vessels may need to carry less cargo to meet the reduced draught limits.

• Fewer daily transit slots could lead to increased queues and delays.

• If restrictions tighten further, some carriers could consider alternative routings, adding significantly to transit times.

  
  

The restrictions are already influencing carrier decisions. CMA CGM has postponed a planned $150 per TEU Low Water Surcharge on cargo moving from the west coast of South America through the Panama Canal. Originally due to take effect on 1 September, the surcharge has now been pushed back to 1 October.

For importers and exporters, the concern isn’t simply the number of ships able to pass through the canal. Lower cargo capacity per vessel could add further pressure to available space, schedules and freight costs.

Should conditions deteriorate, some Asia to US east coast services could potentially divert around the Cape of Good Hope, adding around 30% to transit times.

If you’ve got shipments moving through the Panama Canal, speak to your local Advantage Worldwide office for the latest advice and routing options.