Panama Canal Suspends Auction for Close-in Transits Slots

The Panama Canal Authority is continuing to take steps to preemptively manage against an anticipated weather pattern that could again challenge its water management and the operations of the Canal. It has now advised agents that it will be temporarily suspending the auction process for the close-in transit slots based on “current hydrological conditions.”

In a notice to clients on July 20, the Norton Lilly agency reported that it has been advised of a temporary suspension of the auction for “Period 3” slots, which are offered 96 to 48 hours before the transit time. Typically, they were the most competitive slots, commanding the highest prices for vessels operating on a tight schedule and without a pre-arranged slot. With the surge in traffic at the Canal due to the disruptions in the Middle East and high demand for LNG exports from the U.S., there were reports that companies were willing to pay in the millions of dollars at the auctions for one of these slots. The top price at auction was reportedly earlier in 2026 at over $4 million for a Neopanamax transit slot.

Norton Lilly says that as of July 25, the Panama Canal Authority will temporarily suspend the auctions for Period 3 for the Regular and Super segments. It is warning customers that it expects increased competition for Period 1 (365 days before transit) and Period 2 (21 days before transit), especially from vessels with limited schedule flexibility.

The suspension, it highlights, only impacts two out of 36 daily transit slots, or just under six percent of the Canal’s capacity. Also, the Panama Canal Authority has not suspended Period 3 auctions for Neopanamax transit slots. Further, Norton Lilly reports that the authority also plans to continue to hold Extraordinary Auctions when there is a last-minute cancellation or a vessel advances its scheduled transit.

The greatest impact from the change will come for a smaller number of vessels on a tight schedule that do not have booked transit slots. Norton Lilly is advising that they could “face greater challenges in obtaining a transit slot” and should increase their pre-planning to factor in greater flexibility.

Currently, the Canal’s online dashboard reflects short waiting times for vessels without booked transit slots. As of July 21, it reports there are 55 booked vessels and 16 non-booked vessels waiting for transits. The waiting time for non-booked vessels over the past 28 days averaged 2.4 days for northbound vessels and 4 days for southbound vessels. Currently, 10 of the 16 vessels waiting for transits are northbound Regulars or Supers, and another three Neopanamax ships. Only about a quarter of the vessels currently seeking transit arrived at the Canal without a booked transit time.

The step to temporarily suspend the close-in booking slots follows a move last month when the Authority lowered the maximum draft by half a foot as of July 1. The Authority during the 2023-2024 drought managed water levels through a combination of reducing the number of daily transits and restricting vessel drafts. It also conducted double lockings (two ships at a time in one chamber) and water recycling steps.

They highlight that they learned from the last drought and are working this time ahead of a weather forecast that calls for a very pronounced El Niño pattern. Typically, that reduces rainfall across the isthmus, which in turn lowers the levels in Gatun Lake, the main reservoir for the Canal. The Panama Canal Authority highlights that it is continuing to closely monitor water levels and the weather patterns, and it will take steps to maintain smooth operations at the Canal.