The Panama Canal continues to take measures to prevent issues related to expected weather conditions that may affect water resource management and canal operations. Due to current hydrological conditions, canal authorities have announced a temporary suspension of the auction process for close transit slots.
In a notice to clients, the agency Norton Lilly reported that starting July 25, canal authorities will temporarily suspend auctions for "Period 3" slots, which are offered 96-48 hours before transit time. These slots have typically been the most competitive and in high demand among vessels with tight schedules.
With increased traffic in the canal due to disruptions in the Middle East and high demand for liquefied natural gas exports from the U.S., companies were willing to pay millions of dollars at auctions for one of these slots. Earlier in 2026, the maximum auction price exceeded 4 million dollars for a Neopanamax transit slot.
Norton Lilly warns that competition for "Period 1" slots (365 days before transit) and "Period 2" slots (21 days before transit) is expected to increase, especially from vessels with limited schedule flexibility. However, the suspension will only affect two out of 36 daily transit slots, which is less than six percent of the canal's total capacity.
Additionally, canal authorities have not suspended auctions for Neopanamax transit slots. In the event of subsequent cancellations or if a vessel advances its transit schedule, authorities plan to continue holding extraordinary auctions.
The changes will most significantly impact a small number of vessels with tight schedules that do not have reserved slots. Norton Lilly advises them to increase planning to account for greater flexibility.
Currently, the canal's online dashboard shows short wait times for vessels without reserved slots. As of July 21, 55 vessels were booked, and 16 were waiting for transit. The average wait time for unbooked vessels over the past 28 days was 2.4 days for northbound vessels and 4 days for southbound vessels.
The measures to temporarily suspend auctions for close slots follow the canal authorities' decision to reduce the maximum draft by half a foot starting July 1. In the context of the 2023-2024 drought, authorities managed water levels by reducing the number of daily transits and limiting vessel drafts.
Canal authorities continue to closely monitor water levels and weather conditions, taking measures to maintain the smooth operation of the canal.
