Panama Cuts Slots Again, Congestion Tops COVID Peak, and FMC Tightens the Screws
- Lanta LLC
- 58 minutes ago
- 2 min read
Global port congestion has reached 4.3 million TEU of stranded capacity, exceeding the COVID-era peak. Delays are removing roughly 1.7 million TEU of effective capacity from the market just as the Panama Canal tightens access again.
What is changing at the Panama Canal?
The Panama Canal Authority will reduce daily transits from 36 to 34 on September 4, including nine Neopanamax and 25 Panamax slots. On September 15, capacity falls to 32, with Panamax slots dropping to 23.
Planned draft increases were also postponed: 48 feet is now scheduled for September 2, and 47.5 feet for October 1. Watershed rainfall ran 34% below average from May through August, while inflows fell 44%. A severe 2026–2027 El Niño forecast adds further risk. More than 70% of canal cargo originates in or moves toward the United States.
Asia–East Coast rates: approximately $10,527/FEU
Asia–West Coast rates: approximately $7,193/FEU
East Coast premium since the Iran war began: 42%
Los Angeles/Long Beach July volume: nearly 1.9 million TEU
What does the FMC decision mean for shippers?
On July 8, the U.S. Court of Appeals upheld the FMC’s position that detention and demurrage fees must promote freight fluidity. Shippers should challenge charges assessed when port closures or operational barriers made retrieval impossible.
The FMC also denied short-notice war or conflict surcharge requests without well-supported “good cause” and is consolidating rulemaking procedures. Review every surcharge, free-time clause, and invoice.
What should businesses do now?
Book canal reservations early, price West Coast intermodal routing, and use a warehouse management system for real-time inventory control. Lanta Logistics provides 3PL fulfillment services, Mid-Atlantic fulfillment, transportation, and warehousing from its Glen Burnie warehouse: supported by FlowOps logistics software and real-time visibility.
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