Freight Pulse & Law Update: Panama Canal Tightens, PHMSA Rewrites Hazmat Rules

Short answer: book Panama capacity early, budget for surcharges, and treat September 3 as a hard hazmat-compliance deadline. Drought is shrinking canal slots while congestion has effectively removed a top-10 carrier’s worth of usable ocean capacity.

Why is the Panama Canal tightening transit?

El Niño conditions have pushed rainfall across the canal watershed 34% below the historical average. Beginning September 3, daily capacity falls to 9 Neopanamax and 25 Panamax slots. On September 15, Panamax capacity drops again to 23 slots.

That means fewer reliable sailings, tighter booking windows, and more schedule risk. MSC and CMA CGM are adding Panama-related charges; reported increases reach approximately $376 per 45-foot container for MSC and $500 per TEU for CMA CGM on applicable trades. Check the Panama Canal Authority advisory before finalizing routing.

What does the congestion data show?

Sea-Intelligence estimates that port congestion is absorbing 1.7 million TEU: roughly the capacity of the world’s eighth-largest carrier. Spot rates are surging more than 400% on some lanes, even with soft demand. The fleet exists; too much of it is stuck waiting.

What changes under HM-268 and the Jones Act waiver?

PHMSA’s HM-268 rules take effect September 3. Shippers can use smaller limited-quantity markings, electronic emergency response information, and higher lithium battery allowances: up to 30 kg per battery under the Materials of Trade exception. Review the final rule.

The Jones Act waiver now runs through November 15, 2026, but foreign-flag movements require a pre-voyage Vessel Availability Request and approval from the Department of War and MARAD. CBP’s request requirements include vessel, cargo, routing, and national-defense details.

What should shippers do now?

• Reserve ocean capacity earlier and build lane-delay buffers.

• Add carrier surcharges to landed-cost forecasts.

• Audit hazmat labels, electronic records, lithium limits, and training.

• Verify carrier readiness for DOT brake check inspections and safety blitzes.

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