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FinancePanama Canal Imposes Initial Transit Restrictions Amid El Niño Forecast
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The Panama Canal Authority (ACP) has temporarily suspended auction processes for close-in transit slots (offered 48 to 96 hours before transit) and reduced daily crossings from 36 to 34, effective July 25. Major carriers have responded by announcing surcharges of at least US$100 per twenty-foot equivalent unit (TEU) due to anticipated operational constraints and higher canal pricing. These measures come against the backdrop of a US National Oceanic and Atmospheric Administration (NOAA) forecast indicating a 91% probability of a strong or very strong El Niño weather pattern during the last quarter of 2026 and into early 2027. The restrictions aim to manage water levels and transit efficiency amid drought concerns linked to the El Niño event.
Source report
The Panama Canal Authority (Autoridad del Canal de Panamá [ACP]) has temporarily suspended auction processes for close-in transit slots — those offered 48 to 96 hours before transit — and reduced the number of daily crossings from 36 to 34, effective July 25.
Key Developments
- Transit slot auctions suspended: Close-in transit slots (offered 48–96 hours before transit) are no longer available through auction.
- Daily crossing capacity reduced: The number of daily transits has been cut from 36 to 34.
- Carrier surcharges announced: Major carriers have already imposed surcharges of at least US$100 per twenty-foot equivalent unit (TEU) in response to anticipated operational constraints and higher canal pricing.
Background
These measures come against the backdrop of a forecast by the US National Oceanic and Atmospheric Administration (NOAA), which projects a 91% probability of a strong or very strong El Niño weather pattern during the last quarter of 2026 and into early 2027.
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Panama Canal Imposes Initial Crossing Restrictions Amid El Niño Forecast