SHIPPING: Panama Canal adds additional transit slot, raises maximum draft allowance

HOUSTON (ICIS)–As the water level in the freshwater lake that feeds the Panama Canal’s locks continues to rise, the Panama Canal Authority (PCA) has increased the maximum allowable draft to 50ft (15.25m), effective immediately, and will add an additional transit slot beginning 1 September.

The additional slot brings the total number of passages allowed per day to 36, almost at par with the 36-38 transits/day seen before a drought forced the PCA to limit transit for the first time in its history.

There are 10 slots for Neopanamax vessels, 20 for supers and six for regular vessels.

The region has been through an intense drought that caused the PCA in 2023 to lower allowable drafts and to limit the number of vessels permitted to transit each day, a first since the canal formally opened in 1914.

Restrictions have gradually eased over the past few months and are approaching the average daily transits of 36-38/day seen prior to impacts from the drought.

The better conditions at the canal are likely to improve transit times for vessels traveling between the US Gulf and Asia, as well as between Europe and countries on the west coast of Latin America.

This should benefit chemical markets that move product between regions, as shown in the following chart.

WAIT TIMES FOR NON-BOOKED VESSELS
Wait times for non-booked southbound vessels ready for transit have been relatively steady at around two days, according to the PCA vessel tracker.

As of 19 August, the tracker showed wait times of 3.0 days for northbound traffic and 0.5 days for southbound traffic.

Visit the ICIS Logistics – impact on chemicals and energy topic page

Thumbnail image shows a container ship passing through the Panama Canal. Courtesy the Panama Canal Authority