Due to the sharp increase in backlog of goods waiting to pass through the Panama Canal, the Canal Authority has notified the shipping companies that they will change the booking system within at least the next two weeks and implement temporary restrictions on the passage time of booked ships.

The Panama Canal Authority stated that "booking condition 3 will take effect on August 8th for Panamax locks. According to condition 3, the number of ships that can book through Panamax locks will be reduced to 14. This condition is valid until August 21st and aims to alleviate congestion caused by ships that are already queuing or passing through locks due to the inability to book in advance

The Panama Canal has reduced the daily transit times of all booked and unsubscribed vessels to approximately 32. They pointed out that these locks will continue to remain basically unchanged, with the larger Neopanamax type locks being able to pass 10 times at a time, while the rest will pass through old-fashioned locks, especially those used by liquefied natural gas carriers and bulk carriers. However, the draft limit remains at 44 feet, which is expected to continue until 2024, which means that large container ships are either forced to reduce their loading capacity or transfer containers across the isthmus through railways.

Since the implementation of the restrictions, analysts have noticed a rapid increase in the number of waiting ships. Reuters reported, citing officials from the Canal Authority, that there are currently up to 161 ships waiting, compared to approximately 90 ships at this time in previous years. According to Reinitiv Eikon data, at least 40 ships are still heading towards the canal.

Analysts say the waiting time has been as long as three weeks. A week ago, global agency Waterfront Maritime Services reported that the number of booked ships had increased by 16, from 38 to 54, while 83 ships were waiting for transit but were not booked.

According to ship brokers and shipowners, the waiting time for ships seeking to travel north through the Panama Canal has reached 20-21 days, while the waiting time for ships traveling south has reached 18-21 days.

According to the temporary conditions currently in effect, the maximum number of reserved berths is 14 (including 10 ultra large vessel berths and 4 regular vessel berths). The canal management department emphasizes that ships already booked will not be affected by these temporary measures and hopes that more ships will be booked in the future.

Under normal circumstances, the canal provides 23 reservation periods for its operation every day. They pointed out that during periods of significant reduction in transportation capacity, such as the closure of waterways for maintenance, daily booking periods are usually reduced to 16. Despite the current restrictions and measures taken, the demand is still high, resulting in an increase in waiting time.

As the waiting time increases, in order to ensure passage through the canal, it is necessary to book a longer period of time in advance. If the ship cannot book on time due to various reasons, the shipowner must also consider canceling the fee.

You can cancel this period and they will refund you based on how many days in advance you have, "said a shipping broker.

Another ship broker stated that it is necessary to cancel the booking at least 10 days in advance to avoid incurring fees. At the same time, it is also possible to exchange the booked vessel with another vessel, but this will also incur additional costs.

According to the Canal Authority, booked ships can be exchanged under various conditions, including two ships that must be registered with the same operator and transit in the same direction. In addition, ships can exchange their reserved transit time slots up to five times per booking, and the exchange fee will be charged based on the number of times the ship participates in the exchange.

A shipowner said, "We booked a ship that will transit on the 16th, but she was late, but we still have another ship available for transshipment, which cost us $16000 and does not include the $40000 booking fee

The Director of the Panama Canal Authority, Ricaurte Vasquez Morales, said, "We have also encountered situations where ships have long queues before. Communication is crucial, and we need to take proactive measures to ensure current and future competitiveness and operational capabilities

Analysts say some shippers are looking for other ways to reduce delays. According to previous reports in the maritime industry, some shippers are considering splitting some of their cargo onto two smaller ships or choosing to significantly extend their voyage to avoid the Panama Canal. The current draft restrictions have no impact on liquefied natural gas transport ships, but it is worrying that if the canal further reduces its draft level, it may have an impact on this part of transportation, as Europe and Asia are both major natural gas importers, and as winter approaches, demand in both regions will increase.