GlossaryEN1 min readUpdated: Jul 27, 2026
Panama Canal Surcharge
The Panama Canal Surcharge, or PCS, is a freight surcharge that container lines levy on trades routed through the Panama Canal to pass increased transit costs or capacity risks – for instance during low water and reduced draft limits – on to shippers.
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Source: https://www.msc.com/en/newsroom/customer-advisories/2026/july/pcs-trade-asia-to-usec-and-us-gulf-coast
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Definition & Explanation
The Panama Canal Surcharge, or PCS, is a freight surcharge that container lines levy on trades routed through the Panama Canal to pass increased transit costs or capacity risks – for instance during low water and reduced draft limits – on to shippers. It is usually charged per container, for example 100 USD per TEU and 200 USD per 40-foot container, and applies to defined trade lanes such as Asia to the US East Coast. The gate-in date, the moment the container is delivered into the terminal, is often decisive for its application. Freight forwarders should state transparently in quotations whether the PCS is included in the rate, as carriers can introduce or adjust such surcharges at short notice – especially when Neopanamax vessels face restrictions. Not to be confused with the Panama Canal toll, which the shipping line pays directly to the Panama Canal Authority.
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