# Panama Canal Reduces Draft Limits Ahead of El Niño – MSC Imposes $100 USD per TEU Surcharge

**Category:** Operational Alerts  |  **Source:** Frachtportal Redaktion  |  **Published:** 2026-07-26  |  **Updated:** 2026-07-27

**Tags:** Panamakanal, El Niño, MSC, Panama Canal Surcharge, PCS, Neopanamax, Tiefgang, Seefracht, Containertransport, Logistik News, Transport News, Fracht News, Speditions News, Supply Chain News, Zoll News, Frachtportal News, Digitalisierung

> The Panama Canal prepares for strong El Niño. Initial draft restrictions already in effect, MSC charges USD 100 per TEU on selected routes from August 19.

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The Panama Canal is preparing for a potentially very strong El Niño. The US climate authority NOAA sees an 81 percent probability for October through December 2026 that a very strong El Niño event will develop. The Panama Canal is therefore warning of possible further capacity restrictions. However, no comprehensive cuts to daily transit numbers have been decided yet.

The new draft restrictions for the Neopanamax locks are already concrete. Draft describes how deep a loaded vessel sits in the water. Since July 24, the maximum permitted draft has been 14.94 meters or 49 feet. Starting August 15, it will be further reduced to 14.78 meters or 48.5 feet.

For container shipping lines, this could mean that individual vessels are not permitted to load as much cargo. Particularly heavy containers could be loaded later, shifted to other departures, or transported via alternative routes. Whether this actually happens on a larger scale depends on water levels in Lake Gatún and vessel utilization rates.

MSC is already responding with a Panama Canal Surcharge, or PCS for short. Starting **August 19, 2026**, the shipping line is charging **USD 100 per TEU**. For a 40-foot container, this typically corresponds to USD 200. The gate-in date is decisive.

The surcharge does not apply to all MSC traffic through the Panama Canal. Shipments from Southeast Asia, China, South Korea, and Japan to the US East Coast and US Gulf Coast are affected. The surcharge applies to all cargo types and until further notice.

Reports of an already decided reduction from 36 to 34 daily booking slots are outdated. The temporary planned suspension of certain short-term Panamax auctions has been withdrawn. Further cuts remain possible if water conditions deteriorate.

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Freight forwarders should carefully check whether the PCS is already included in MSC quotes. For a 40-foot container, additional charges of up to 200 USD may apply.

The gate-in date is also important. An early booked container can still be subject to surcharges if it is not delivered to the terminal until August 19 or later.

For heavy cargo, shippers should check early with the shipping line regarding weight restrictions, roll-over risks, or changes to the planned departure. A roll-over means that the container will not travel as planned and will be shifted to a later vessel.

Possible alternative routes via the Suez Canal or the US West Coast should only be offered after careful cost and transit time review. There are separate risks and surcharges involved.

In short: There is still no major transit time reduction, but the draft limits and MSC surcharge show that shippers must prepare for rising costs and short-notice changes.

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NOAA sees an 81 percent probability of a very strong El Niño between October and December 2026.
The 81 percent is not a direct forecast for a drought at the Panama Canal.
The maximum Neopanamax draft has been 14.94 meters since July 24.
Effective August 15, the limit decreases to 14.78 meters.
A planned reduction to 34 daily booking slots has been withdrawn.
The Panama Canal is currently maintaining 36 daily booking slots.
MSC is charging a PCS of USD 100 per TEU effective August 19, 2026.
The gate-in date is the determining factor for MSC.
The MSC surcharge applies to shipments from Asia to the US East Coast and Gulf Coast.
Further draft or slot restrictions are possible but have not yet been decided.

## Related Entities

### Countries

- [Japan](https://www.freight-academy.com/en/information/land/jp)
- [Panama](https://www.freight-academy.com/en/information/land/pa)
- [China](https://www.freight-academy.com/en/information/land/cn)

### Glossary

- [Container](https://www.freight-academy.com/en/glossary/container)
- [FCL (Full Container Load)](https://www.freight-academy.com/en/glossary/fcl-full-container-load)
- [Shipping company](https://www.freight-academy.com/en/glossary/shipping-company)
- [Alternative Shipping Routes](https://www.freight-academy.com/en/glossary/alternative-shipping-routes)
- [International Freight Charge Calculation](https://www.freight-academy.com/en/glossary/international-freight-charge-calculation)
- [Panama Canal Passage](https://www.freight-academy.com/en/glossary/panama-canal-passage)
- [Panama Canal Lock Processing](https://www.freight-academy.com/en/glossary/panama-canal-lock-processing)
- [Gate-In](https://www.freight-academy.com/en/glossary/gate-in-2)
- [Alternative routes](https://www.freight-academy.com/en/glossary/alternative-routes)

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