2026-09-18 US West Coast
HCM-UWC 8,024 USD/FEU +6.90% Index 3,910 pts
2026-09-18 US East Coast
HCM-UEC 10,796 USD/FEU +9.14% Index 3,304 pts
2026-09-18 Northern Europe
HCM-NEU 3,895 USD/FEU -2.21% Index 2,681 pts
2026-09-18 Mediterranean
HCM-MED 4,290 USD/FEU -0.59% Index 2,344 pts
2026-09-18 China
HCM-CHN 73 USD/FEU -21.82% Index 856 pts
2026-09-18 Korea
HCM-KOR 325 USD/FEU -0.05% Index 1,090 pts
2026-09-18 Japan
HCM-JPN 487 USD/FEU -3.17% Index 1,572 pts
2026-09-18 Southeast Asia
HCM-SEA 309 USD/FEU -2.26% Index 1,583 pts
2026-09-18 Oceania
HCM-ANZ 4,396 USD/FEU -5.13% Index 6,957 pts
2026-09-18 Middle East
HCM-MEA Suspended
2026-09-18 South America
HCM-SAM 8,833 USD/FEU -17.89% Index 5,519 pts
2026-09-18 South Africa
HCM-ZAF 4,000 USD/FEU +1.97% Index 2,273 pts
2026-09-18 East & West Africa
HCM-EWA 4,888 USD/FEU +1.69% Index 1,245 pts
2026-09-18 Global
VCFI Composite Rate 5,137 USD/FEU +4.58% VCFI Composite Index 3,586 pts +3.37%
2026-09-18 US West Coast
HCM-UWC 8,024 USD/FEU +6.90% Index 3,910 pts
2026-09-18 US East Coast
HCM-UEC 10,796 USD/FEU +9.14% Index 3,304 pts
2026-09-18 Northern Europe
HCM-NEU 3,895 USD/FEU -2.21% Index 2,681 pts
2026-09-18 Mediterranean
HCM-MED 4,290 USD/FEU -0.59% Index 2,344 pts
2026-09-18 China
HCM-CHN 73 USD/FEU -21.82% Index 856 pts
2026-09-18 Korea
HCM-KOR 325 USD/FEU -0.05% Index 1,090 pts
2026-09-18 Japan
HCM-JPN 487 USD/FEU -3.17% Index 1,572 pts
2026-09-18 Southeast Asia
HCM-SEA 309 USD/FEU -2.26% Index 1,583 pts
2026-09-18 Oceania
HCM-ANZ 4,396 USD/FEU -5.13% Index 6,957 pts
2026-09-18 Middle East
HCM-MEA Suspended
2026-09-18 South America
HCM-SAM 8,833 USD/FEU -17.89% Index 5,519 pts
2026-09-18 South Africa
HCM-ZAF 4,000 USD/FEU +1.97% Index 2,273 pts
2026-09-18 East & West Africa
HCM-EWA 4,888 USD/FEU +1.69% Index 1,245 pts
2026-09-18 Global
VCFI Composite Rate 5,137 USD/FEU +4.58% VCFI Composite Index 3,586 pts +3.37%
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Wednesday, 12/08/2026, 10:22 (GMT +7)

328

Why Is 47.5 Feet a “Dreaded Number” for US East Coast Ports?

Prolonged drought conditions are forcing the Panama Canal to further reduce its maximum allowable draft to 47.5 feet, prompting carriers to introduce surcharges and increasing pressure on supply chains serving the US East Coast.

Panama-canal

Source: Panama Canal Authority

 

Persistent drought is expected to continue putting pressure on operations along key waterways, from the Panama Canal to the Rhine River system in Europe. For carriers and shippers, declining water levels can affect not only vessel loading capacity but also routing decisions and cargo distribution.


Panama Canal Cuts Draft Limits, Putting Pressure on Carrying Capacity


The Panama Canal Authority (PCA) has announced a further reduction in the maximum allowable draft for vessels transiting the canal, from 49.5 feet to 47.5 feet, with the revised limits scheduled to remain in place through early September.

The move comes as drought conditions continue to reduce water levels in Gatun Lake, the main water reservoir supplying the Panama Canal’s lock system. The canal serves as a critical maritime link between the Pacific and Atlantic oceans.

Under normal operating conditions, Neo-Panamax container ships with capacities of around 13,000–14,000 TEU typically require a draft of approximately 50 feet to operate at full capacity. When draft restrictions are lowered, carriers may have to reduce the amount of cargo loaded on each voyage to ensure vessels meet safe-transit requirements. This effectively reduces the actual carrying capacity available on Panama Canal routes.

The revised draft schedule for the Neo-Panamax locks is as follows:

●    From 26 August 2026: Maximum allowable draft reduced to 48 feet.

●    From 3 September 2026: Further reduced to 47.5 feet.

These represent the fourth and fifth draft-limit adjustments made by the Panama Canal this year. The developments come as climate forecasters monitor the risk of El Niño, a weather phenomenon that contributed to severe drought conditions in the region in 2023.


Higher Surcharges Raise the Prospect of Supply Chain Shifts


Carriers have moved quickly to introduce Panama Canal-related surcharges to offset additional costs arising from the revised operating conditions.

●    MSC: A surcharge of USD 100/TEU on cargo from Asia to the US East Coast and Gulf Coast.

●    CMA CGM: A surcharge of up to USD 320/TEU on the same trade lanes.

According to the PCA, draft restrictions are determined based on actual water levels in Gatun Lake as well as forecasts for the coming weeks. The measures form part of the authority’s broader water-management strategy aimed at maintaining reliable canal operations over the long term.

Importantly, the PCA said it currently has no plans to reduce the number of vessels allowed to transit the canal each day. This helps limit the risk of a repeat of the severe congestion seen during the 2023–2024 El Niño period, when canal capacity was constrained by both draft restrictions and limits on daily transits.

If the draft restrictions persist, some cargo moving from Asia to inland US markets could be diverted to US West Coast ports, including Los Angeles–Long Beach, Oakland and Seattle–Tacoma, as well as Prince Rupert and Vancouver in Canada.

Switching to alternative intermodal routes could help companies reduce their dependence on Panama Canal draft restrictions. However, it would also create additional demand for longer-distance rail and trucking services. Logistics costs could therefore rise, particularly for cargo flows that have traditionally been optimized around Panama Canal routings.


Drought Spreads to Europe: Warning Signs from the Rhine


The impact of drought is not limited to the Americas. In Europe, low water levels are also putting pressure on operations along the Rhine River, a critical inland waterway connecting the ports of Rotterdam and Antwerp-Bruges with major industrial centers in the Netherlands, Germany, Switzerland and Central Europe.

Low water levels are restricting the operating capacity of barges on the route. Logistics company DHL has said that current hydrological conditions are creating significant challenges for inland transportation.

When navigational draft is restricted, barges have to reduce their cargo loads to operate safely. This means more voyages are required to move the same volume of cargo, resulting in longer transit times, higher costs and greater pressure to shift freight onto rail and road networks.

The developments on the Panama Canal and the Rhine highlight how extreme weather is increasingly becoming a significant factor affecting inland and maritime waterway capacity. For shippers, monitoring water levels, operational restrictions and potential routing adjustments will become increasingly important in logistics planning, particularly as the industry enters the year-end peak shipping season.

 

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Source: Phaata.com (According to Freight Waves)

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