CMA CGM is set to become the first primary carrier to apply a new surcharge on shipments transiting the Panama Canal in response to the ongoing capacity reductions.  The world's third-largest shipping line said the reduced capacity measures introduced by the waterway authority this year – and forecast to continue into 2024 – were pushing up its costs.  "The lack of precipitation over the summer has forced the Panama Canal Authority to reduce the number of vessels transiting daily. Consequently, by January 1, booking windows for crossing the Canal's neopanamax locks will be reduced by 30%.

"These restrictions, combined with an increase in the canal tariff implemented earlier in the year, are taking a severe toll on CMA CGM's operations," it said.  According to analysts, the following scheduled transit reduction – down to 18 a day from February – could mean daily capacity through the Neopanamx locks could be less than 50% of its design capacity. 

Earlier this month, Maersk warned shippers to prepare for transit issues at the waterway but said advanced planning was currently enough to mitigate potential delays.  It told customers: "We are closely collaborating with the PCA to secure the necessary transit slots. By scheduling transits between 30 and 14 days before arrival, depending on vessel size and direction, we aim to safeguard our transit schedule."  It added that it had "limited" access to Panama Canal Railway services, which runs block trains between Balboa and Cristobal, "enabling an alternative container transport option between the Atlantic and Pacific gateways".  However, public protests nationwide have complicated matters concerning Canadian mining company First Quantum's plans to expand the Cobra Panama copper mine into the virgin rainforest.

The protests have drawn as many as 250,000 Panamanians and local environmentalists onto the streets. Panama's major roads are frequently blockaded, including access roads to the primary container terminals at either end of the Canal.

MSC has also applied a $297 per teu surcharge on shipments transiting the Panama Canal in response to the increasing reductions. It followed the announcement on November 21 by CMA CGM of a $150 per teu 'Panama Adjustment Factor', valid from January 1. MSC's surcharge, almost double that of the French carrier, will begin two weeks earlier, on December 15.

MSC told customers: "During Q2 23, the Panama Canal Authority decided to reduce draught from 14.94 metres to 13.41.

"Despite several measures to conserve water over the last months, lack of precipitation in the area is affecting the Canal's water level. Consequently, the canal authority has recently confirmed further restrictions regarding the number of canal vessels crossing.

"These restrictions, combined with the increase of the canal tariff implemented earlier this year, are having a direct impact on overall MSC operations costs." 

According to analysts, with a reduction to 18 transits a day expected from February, daily capacity through the neo-Panama locks of the Canal could be less than 50% of design capacity.  With little sign of improving weather, Maersk warned shippers that, while its advanced planning was sufficient to mitigate potential delays, they should prepare for other issues. It told customers: "We are closely collaborating with the PCA to secure the necessary transit slots. By scheduling transits between 30 and 14 days before arrival, depending on vessel size and direction, we aim to safeguard our transit schedule."

It also noted it had secured access to blocktrain services between Balboa and Cristobal, "enabling alternative container transport options", but stressed these were "limited".