Splash 247 — 2026-10-06
Maritime and Ports
The Panama Canal is extending its long-term slot allocation programme to the Panamax locks for the first time as it looks to give more customers greater certainty through the coming dry season.
The new Long-term Slot Allocation, or LoTSA, phase will cover January 3 to April 3, 2027, with the established neopanamax system running alongside a new panamax pilot.
For neopanamax vessels, 36 packages covering 270 slots will be offered, split between 165 northbound and 105 southbound passages. The panamax pilot will offer 51 packages and 288 slots, evenly spread at roughly three transits per day. Both will be allocated through sealed-bid competitions in November.
The move builds on a system first introduced for the larger locks in 2024, when the Panama Canal Authority began offering blocks of future reservations to customers seeking greater scheduling certainty after the severe 2023-24 drought. That need for certainty has only increased this year.
Splash reported in May that neopanamax auction prices had surged to as much as $4m as Middle East disruption redirected more US energy cargoes through Panama. By August, one LPG carrier had paid a record $5.3m for priority passage as deteriorating water conditions and strong demand squeezed capacity. The canal subsequently cut daily booking capacity to 32 ships and tightened draft limits as rainfall disappointed, before recent rains allowed some restrictions to be eased again.
LoTSA does not replace the existing reservation and auction systems, with remaining capacity continuing to be sold through both.