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Daily News

Panama Canal Drought: ACP Slashes Daily Slots & Draft Limits from September – East Coast Transit Times Expected to Worsen to 50–70 Days

Mihan Aug 26,2026

 

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Mihan Logistics Urges Shippers: Book Los Angeles Routing Where Possible; Allow 7–10 Day Buffers for All East Coast & Gulf Shipments.

The Panama Canal Authority (ACP) issued Advisory to Shipping No. A-29-2026 on August 20, confirming that despite the arrival of the rainy season in the Isthmus of Panama, watershed conditions remain critically dry. Cumulative rainfall across the Canal watershed has been 34% below historical averages during the current hydrological year, while inflows have plunged 44% below normal — and forecasts for the 2026-2027 El Niño event point to further deterioration.

1.Effective August 21, 2026, for bookings beginning September 4, 2026, the ACP has implemented the following restrictive measures:

Measure
Details
Neopanamax Locks Daily Slots
Reduced to 9 (only 1 slot available during Booking Period 2)
Panamax Locks Daily Slots
Reduced to 25 (only 1 slot available for Regular vessels during Booking Period 2)
Conditioned Slots (Neopanamax)
Suspended — no longer available
Vessel Draft Limits
Ongoing reductions expected to continue

2.Four Critical Impacts on Shippers

(1) Reduced Vessel Capacity & Tighter Space
With fewer daily transit slots, vessel arrivals at East Coast and Gulf ports will decline sharply. Carriers are already reducing load volumes on vessels transiting the Canal, meaning heavy cargo is at high risk of rollover — and delays may extend beyond a single week.

(2) Longer Queues & Extended Delays
The reduced slot availability has pushed waiting times to 15–20 working days or more. Shippers should add 7–10 days of buffer to their estimated arrival dates when planning inventory and communicating with buyers.

(3)Potential Surcharges & Rising Freight Rates
Carriers are widely expected to impose Panama Canal surcharges to offset increased operating costs. With capacity tightening across the lane, ocean freight rates for East Coast and Gulf routings are under upward pressure.

(4)East Coast & Gulf Transit Times to Stretch to 50–70 Days
The combined effect of reduced slots, longer queues, and draft restrictions means that direct East Coast services — including Savannah, Houston, and New York — will see transit times extend to 50–70 days as a new normal. Shippers relying on these routings must recalibrate their supply chain timelines immediately.

3.Mihan Logistics Recommendation: Route via Los Angeles Wherever Possible

"If your cargo can go via Los Angeles, send it via Los Angeles."

For time-sensitive shipments bound for the U.S. East Coast and Gulf regions, the most reliable alternative today is routing through Los Angeles/Long Beach with rail or truck transfer to final destinations. This approach avoids the Canal bottleneck entirely and offers far more predictable transit times — typically 25–35 days door-to-door, compared to 50–70 days via the Canal.

Mihan Logistics is actively coordinating with our carrier partners to secure priority rail and trucking capacity from the West Coast to major inland and East Coast destinations. We are also closely monitoring the ACP's daily slot allocations and draft adjustments, and will provide real-time updates to affected shipments.

4.Our Recommendations to Shippers

Priority
Action Item
Immediate
Review all upcoming East Coast/Gulf shipments; identify cargo suitable for LA routing
Short-Term
Add 7–10 day buffers to all delivery timelines; communicate revised ETAs to consignees
Medium-Term
Factor in potential freight rate increases and surcharges into Q4 budgeting
Ongoing
Stay in close contact with your Mihan Logistics representative for real-time route updates

5.Mihan Logistics: Your Partner Through Disruption

With decades of experience in U.S. trade lane management, Mihan Logistics is fully equipped to help you navigate this crisis. Our team provides:

  • Alternative route planning — identifying the most reliable and cost-effective options for your cargo.
  • Carrier coordination — securing vessel space and rail/truck capacity in a tight market.
  • Real-time visibility — tracking and alerting you to schedule changes as they happen.
  • Proactive advisory — helping you adjust inventory and supply chain strategies to minimize impact.

Don't let the Panama Canal drought disrupt your business. Contact Mihan Logistics today to reroute your shipments, secure capacity, and keep your supply chain moving.

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