Panama Canal Tightens Draft Limits in Three Consecutive Steps as Four Carriers Impose Surcharges Differing by Up to 3.2 Times

Source: Tradewinds

The Panama Canal Authority (ACP) will reduce the maximum allowable draft for vessels transiting the Neopanamax locks to 48.5 ft from August 15, 2026, 48.0 ft from August 26, and 47.5 ft from September 3. At the same time, four major carriers have announced different transit surcharges for cargo bound for the U.S. East Coast, ranging from USD 100 to USD 320/TEU. CMA CGM subsequently announced that it would raise its surcharge to USD 500/TEU from September 10.

For Vietnamese exporters, the impact goes beyond the surcharge itself, as the effective dates, scope of application and charging criteria vary from one carrier to another.

Key Takeaways

●    The ACP announced on August 5, 2026, two additional draft reductions: to 48.0 ft (14.63 m) from August 26 and 47.5 ft (14.48 m) from September 3, following the 48.5-ft (14.78 m) limit taking effect on August 15. The current limit stands at 49.0 ft (14.94 m).

●    The ACP confirmed that the draft restrictions will not reduce the number of vessels allowed to transit the canal each day, unlike during the 2023–2024 drought.

●    Four major carriers are applying or preparing to apply different Panama Canal transit surcharges on cargo bound for the U.S. East Coast: MSC at USD 100/TEU from August 19, Hapag-Lloyd at USD 130/TEU from August 15, ONE at USD 150/TEU from August 10, and CMA CGM at USD 320/TEU from July 25, according to information reported by FreightWaves and Sourcing Journal.

●    On August 11, 2026, CMA CGM announced that it would raise its surcharge to USD 500/TEU from September 10, 2026, for Far East cargo bound for the U.S. East Coast and Gulf Coast.

●    The freight rate gap between the U.S. East and West Coasts from Ho Chi Minh City reached USD 3,368/FEU in the August 7, 2026, period, according to Phaata's VCFI. This provides an important reference point for companies considering routing cargo through U.S. West Coast ports and then moving it inland by rail.

Three Draft Reductions in Less Than Three Weeks

The maximum allowable draft for vessels transiting the Panama Canal's Neopanamax locks will be adjusted three times in less than three weeks, from August 15 to September 3, 2026.

According to an ACP notice published on pancanal.com on August 5, 2026, the limit will fall to 48.0 ft (14.63 m) from August 26 and then to 47.5 ft (14.48 m) from September 3. These two reductions follow the 48.5-ft (14.78 m) limit taking effect on August 15, which had previously been announced by the ACP. A summary issued by shipping agency ISS on August 6 put the current limit at 49.0 ft (14.94 m).

The ACP said the adjustments are based on current and forecast water levels in Gatún Lake over the coming weeks. They form part of a water-management strategy introduced in December 2025 in preparation for the 2026 dry season. According to the ACP, the two new adjustments represent the fourth and fifth draft reductions this year.

Importantly, the ACP has not reduced the number of vessels permitted to transit the canal each day. This marks a significant difference from the 2023–2024 drought period. According to The Loadstar, the canal's operating capacity fell by as much as 50% at the time, while the number of daily transits was cut from 36 to 18. Sourcing Journal also reported that the draft limit for Neopanamax vessels was reduced to as low as 44 ft during that period.

In other words, the current pressure is primarily on the amount of cargo that can be loaded per voyage, rather than on the number of vessels permitted to transit the canal.

Weather conditions remain an underlying risk behind the latest adjustments. According to the ACP, the probability of a severe El Niño event increased from 25% in April to 81% in July 2026.

In a July 22 statement, ACP Administrator Ricaurte Vásquez Morales warned that:

“capacity restrictions are likely to be implemented, not only through draft limitations but also by reducing the number of daily booking slots”

However, he stressed that the timing and scope of any such measures would depend on market conditions. At this stage, this remains a warning about a possible future measure rather than an official decision by the ACP to reduce daily booking slots.

Four Carriers, Four Surcharge Levels on the Same Trade Lane

Four major carriers are applying or preparing to apply different Panama Canal transit surcharges on cargo bound for the U.S. East Coast, ranging from USD 100 to USD 320/TEU. CMA CGM has subsequently announced a new rate of USD 500/TEU from September.

ONE is applying a Panama Canal Transit (PCT) surcharge of USD 150/TEU on eastbound cargo moving on its EC1, EC2 and EC4 services that transit the Panama Canal. The surcharge took effect on August 10, 2026, according to a carrier notice issued on July 30.

Hapag-Lloyd is applying a Panama Canal Charge (PCC) of USD 130/TEU on cargo from the Far East to North America via the canal. The surcharge applies to all container types, takes effect for sailings departing from August 15, 2026, and will remain in place until further notice.

MSC is applying a Panama Canal Surcharge (PCS) of USD 100/TEU on cargo from Southeast Asia, China, South Korea and Japan to the U.S. East Coast and Gulf Coast. According to a customer advisory issued on July 20, the surcharge takes effect on August 19, 2026, and is assessed based on the container gate-in date rather than the vessel departure date.

CMA CGM has the highest surcharge among the four carriers. According to the carrier's July 3 notice, the transit surcharge for Far East cargo bound for the U.S. East Coast and Gulf Coast took effect on July 25, 2026. The USD 320/TEU rate was reported by FreightWaves and Sourcing Journal.

On August 11, 2026, CMA CGM announced that it would further increase the surcharge to USD 500/TEU from September 10, 2026, for the same trade scope, excluding cargo from Bangladesh to the U.S. East Coast.

This means that on the same trade corridor, the surcharge levels currently differ by as much as 3.2 times. From September 10, the gap between the lowest and highest levels will widen to five times.

However, the scope of application is not identical across the four carriers. ONE limits the surcharge to three specific services; Hapag-Lloyd applies it to cargo bound for North America; while MSC and CMA CGM apply it to cargo bound for the U.S. East Coast and Gulf Coast. These differences in scope need to be taken into account when comparing surcharge levels across carriers.

Another important point for freight procurement teams is that all of these surcharges are quoted in USD/TEU, whereas ocean freight rates are commonly quoted in USD/FEU. The two units cannot be added directly. Companies should ask carriers or forwarders to clearly confirm how the surcharge applies to each container type before incorporating it into cost estimates.

Market Context and Analysis: Surcharges Added to an Already High Freight Rate Environment

Panama Canal transit surcharges are being added to an already elevated freight-rate environment on services to the U.S. East Coast, as reflected in the VCFI. Therefore, the impact of these surcharges should be assessed in relation to total transportation costs rather than by looking at the surcharge amount alone.

According to Drewry on August 6, spot rates on the Shanghai–New York route increased 4% to USD 7,893/40ft, while Shanghai–Los Angeles rates rose 3% to USD 5,894/40ft.

Freightos reported that during the week beginning August 11, Asia–U.S. East Coast rates reached a new high of around USD 9,400/FEU, while Asia–U.S. West Coast rates stood at approximately USD 7,400/FEU. Freightos also noted that West Coast rates increased 11% during the week, significantly faster than the 1% increase on the East Coast.

This suggests that the upward pressure on freight rates over the past week has primarily been driven by demand and broader capacity management across the market, rather than being entirely attributable to the Panama Canal.
For Vietnamese exports, Phaata's VCFI for the August 7, 2026, period showed that the Ho Chi Minh City–U.S. East Coast route reached USD 9,581/FEU, up 9.11% and the highest level across the index. The Ho Chi Minh City–U.S. 

West Coast route stood at USD 6,213/FEU, up 6.83%.

During the same period, Ho Chi Minh City–North Europe rates fell 4.29% to USD 4,943/FEU, while Ho Chi Minh City–Mediterranean rates declined 3.53% to USD 5,705/FEU. The two U.S. routes are therefore moving in the opposite direction from most of the other major trade lanes.

The USD 3,368/FEU gap between Ho Chi Minh City–U.S. East Coast and Ho Chi Minh City–U.S. West Coast is a notable figure when evaluating routing options. This difference can serve as a reference threshold for inland transportation costs if companies consider routing cargo through West Coast ports and then moving it by rail to markets in the eastern United States.

If the total rail transportation cost and additional handling charges at West Coast ports are lower than this gap, the West Coast option may offer a cost advantage. Conversely, if these costs are higher, the direct ocean route through the Panama Canal may remain the more economical option.

Phaata also recommends that companies consider allocating part of their volumes to West Coast ports and combining this with inland rail transportation (IPI) to reduce exposure to the draft restrictions affecting the Panama Canal.

FreightWaves similarly noted that some cargo destined for inland U.S. markets could be diverted through Los Angeles–Long Beach, Oakland or Seattle–Tacoma and then connected to inland destinations by rail. This approach trades longer transit times and higher inland transportation costs for potentially more stable access to vessel capacity on the ocean leg.

The Greater Risk Lies in Potentially Reduced Booking Slots

According to Phaata, the key risk to monitor in the fourth quarter is not only the three upcoming draft reductions but also the possibility that the ACP may have to reduce the number of daily booking slots, as the authority's leadership has warned.

All three upcoming draft limits remain significantly higher than the 44-ft level imposed during the 2023–2024 drought. Lower draft limits may restrict the amount of cargo carried per voyage and are being partially reflected by carriers through surcharges. This is primarily a cost issue and is relatively straightforward to incorporate into cost models.

By contrast, reducing the number of booking slots would directly affect access to vessel capacity and schedule reliability, making it more difficult for companies to plan shipments proactively.

CMA CGM's decision to raise its surcharge to USD 500/TEU from September 10 indicates that at least one carrier is preparing for the possibility that operating costs associated with the route will continue to rise in the coming months.

Recommendations for Importers and Exporters

●    Review cost estimates for U.S. East Coast cargo with container gate-in dates between August 15 and 19. Hapag-Lloyd applies its surcharge from August 15 based on the vessel departure date, while MSC applies its surcharge from August 19 based on the container gate-in date. Therefore, a shipment booked before the effective date may still incur the surcharge if the container is gated in after the effective date.

●    Request written confirmation from carriers of the surcharge applicable to each container type. The four carriers currently have surcharge levels differing by as much as 3.2 times. Choosing a carrier solely on the basis of the base ocean freight rate while overlooking surcharges could result in a significant difference between the actual cost and the initial estimate. Companies can search for and compare freight rates from multiple providers on Phaata before entering negotiations.

●    For cargo scheduled to move after September 10, incorporate CMA CGM's USD 500/TEU surcharge into the cost scenario now. At the same time, companies should compare total transportation costs with carriers offering lower surcharge levels before committing freight rates for the fourth quarter.

●    For cargo destined for inland U.S. locations, obtain rail transportation quotes from West Coast ports during August. The USD 3,368/FEU gap between the two U.S. coasts in Phaata's August 7 VCFI provides an initial cost benchmark. The final decision should also take into account rail rates, port handling charges, transit times and the reliability of each routing option.

Recommendations for Logistics Companies

●    Proactively notify customers before the surcharge appears on invoices. The nearest effective dates are August 15 and August 19. A comparison table covering the four carriers, surcharge levels, trade scope, effective dates and charging criteria would help customers evaluate their options more easily.

●    Prepare two quotation scenarios for cargo destined for inland markets in the eastern United States: direct transportation via the Panama Canal, or routing via the U.S. West Coast followed by inland rail transportation. The decision to switch between the two options should be based on total cost and transit time rather than ocean freight alone.

●    Review forward contracts already signed for Q4 to determine whether the Panama Canal transit surcharge is included in or excluded from the committed freight rate, particularly for shipments using CMA CGM services after September 10.

●    Maintain a booking lead time of four to six weeks for cargo to the U.S. East Coast and Gulf Coast, while closely monitoring ACP announcements regarding potential adjustments to daily booking slots if hydrological conditions continue to deteriorate.

Frequently Asked Questions

How much additional Panama Canal-related surcharge could Vietnamese cargo to the U.S. East Coast incur?

It depends on the carrier and the scope of service. Published levels include USD 100/TEU from MSC from August 19, USD 130/TEU from Hapag-Lloyd from August 15, USD 150/TEU from ONE from August 10, and USD 320/TEU from CMA CGM from July 25, according to sources cited by FreightWaves and Sourcing Journal. CMA CGM will raise its surcharge to USD 500/TEU from September 10, 2026.

These surcharges are calculated per TEU and are separate from ocean freight, which is commonly quoted per FEU. Companies should confirm with the carrier how the surcharge applies to the specific container type.

When can routing cargo via the U.S. West Coast and then connecting by inland rail be more cost-effective?

This option can be advantageous when the total inland transportation cost from a West Coast port to the final destination is lower than the ocean freight differential between the two U.S. coasts.

According to Phaata's VCFI for August 7, 2026, the gap between Ho Chi Minh City–U.S. East Coast and Ho Chi Minh City–U.S. West Coast was USD 3,368/FEU. This provides a reference point for the cost calculation, but companies should also consider transit time, handling charges and the risks associated with switching transportation modes.

Will the Panama Canal reduce the number of vessel transits as it did during the 2023–2024 drought?

The ACP says the current draft adjustments will not change the number of vessels permitted to transit the canal each day. However, in a July 22 warning, ACP Administrator Ricaurte Vásquez Morales said that if hydrological conditions deteriorate further, restrictions could potentially be expanded to include a reduction in daily booking slots.

At present, this remains a warning about a possible measure and is not an official decision to reduce the number of daily booking slots.

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Source: Phaata -  Where Shippers & Logistics Providers Connect

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