Panama Canal cuts Neopanamax draft to 48.5 feet as carriers add fresh surcharges
The Panama Canal Authority's progressive draft-restriction schedule cut the maximum authorised Neopanamax draft to 14.78 metres (48.5 feet) effective 15 August 2026, part of what the Authority describes as a water-management strategy to keep canal operations safe and reliable through a forecast strengthening El Niño that threatens Gatun Lake's freshwater reserves. It is the second cut in a month — draft fell from 49.5 feet in early July to 49.0 feet on 24 July before this latest reduction — and the Authority notified shipping lines on 5 August of a further cut to 48.0 feet effective 26 August, with 47.5 feet to follow from 3 September.
Key facts
- Effective 15 August 2026, the Panama Canal Authority cut the maximum Neopanamax draft to 48.5 feet (14.78 metres) — down from 49.0 feet on 24 July and 49.5 feet in early July — citing a forecast strengthening El Niño threatening Gatun Lake's freshwater reserves.
- MSC added a $100/TEU surcharge from 19 August on Southeast Asia/China/Korea/Japan to US East and Gulf Coast cargo; CMA CGM raised its own surcharge from $40 to $100/TEU on Asia-to-Americas lanes effective 25 July.
Reduced draft cuts the cargo capacity per Neopanamax transit, and carriers have responded with new per-TEU surcharges rather than absorbing the cost. MSC added a $100/TEU surcharge effective 19 August on cargo from Southeast Asia, China, Korea and Japan to the US East and Gulf Coasts, covering all cargo types. CMA CGM raised its own Panama Canal surcharge from $40 to $100/TEU on Asia-to-East Coast Central America, North Coast South America, Caribbean and Manaus routes, effective 25 July — both carriers cited operational constraints from the reduced water levels.
For agri-food exporters using Asia-to-US East/Gulf Coast or Asia-to-Latin America lanes that route through Panama, the combination of a further scheduled draft cut on 26 August and carriers already layering on surcharges points to continued cost and capacity pressure through at least the rest of the El Niño forecast window, not a one-off adjustment.
Why it matters
If you route perishables or other agri-food cargo through the Panama Canal on Asia-to-Americas lanes, budget for the new per-TEU surcharges now and expect further draft cuts (48.0 feet from 26 August is already scheduled) rather than treating 48.5 feet as the floor for this El Niño cycle.