International Logistics

The Panama Canal Authority is taking further steps to ease some of the restrictions on transits imposed due to water restrictions. Starting late March, they are increasing available spots for daily transits by a further 12%.

The Red Sea shipping crisis has impacted in the supply chain in several ways. According to Jose Asumendi at J.P. Morgan, “depending on the situation in the region, shipping times and prices may change throughout the year. Traffic in the Red Sea may remain low for the foreseeable future.”

In a Notice to Shippers, the ACP said it will increase the number of daily transits to 24. This measure is effective as of January 16, 2024 and will remain in place until further changes in condition.

French carrier CMA CGM is set to become the first major carrier to apply a new surcharge on shipments transiting the Panama Canal. Transatlantic Eastbound – most carriers have come out with their European Union Emission Trading System (ETS) charges, effective January 1, 2024. 

Around 70% of vessels using the Panama Canal require a draft of 44 ft., which is the current limit, down from 50 ft. at the beginning this year. If the draft is lowered further, majority of vessels won’t be able to transit with full loads. Those adjustments are now required.

Effective November 1, 2023 in the Panama Canal, a new booking condition will be implemented called Booking Condition 5. While this condition is in effect, Panamax plus vessel will not be allowed transit and daily capacity will be adjusted to 31 vessels per day. Read more for additional rules and regulations.

As of September 12, the daily transit capacity of the Panama Canal remained at 32 ocean vessels per day, and 116 vessels were waiting to pass in Panama. Panama Canal authority has reported these restrictions could remain for the next 10-12 months.

As of July 30, daily transit capacity of the Panama Canal was adjusted to 32 ocean vessels per day, down from previous restriction of 38 vessels per day. Panama Canal draft restrictions have had little to no impact on exports from U.S. east and gulf ports as vessel utilizations remain light, allowing ships to sit higher in the water.