The Panama Canal Authority has announced a significant overhaul of its long-term transit reservation system, now dubbed LoTSA 2.0, to provide enhanced flexibility, certainty, and value for global shipping lines navigating the crucial shortcut.
Key Changes to the Booking Cycle
The new system modifies the existing booking cycle to two distinct six-month cycles, a reduction from the previous 12-month period. The first cycle is scheduled to run from January 4 to July 4, 2026, with sealed bids for transit slots due by October 28, 2025. Furthermore, the canal is reducing the daily slot volume from four to an average of three slots per day to manage demand and operational constraints, which have included challenges like water shortages in recent years.
New Segmented Service Packages
LoTSA 2.0 introduces tailored service packages to better match the varying operational needs of different vessel types:
- Fix Packages are designed for carriers, such as container and gas carriers, that require guaranteed certainty for their transit schedules.
- Flex Packages cater to those requiring more adaptable slot needs.
- Flex+ Packages are intended for dynamic operations across various segments, including gas carriers, dry bulk, RoRo, and car carriers.
Additionally, the authority is eliminating the one-slot-per-customer-per-date restriction at the Neopanamax Locks, allowing shipping lines the potential to secure multiple transit slots on a single day. The canal is also reinstating the 2023 advanced access rule for LNG vessels in a specific booking period to improve certainty during peak demand.
Improved Flexibility and Reduced Penalties
The updated system provides several benefits aimed at offering greater operational flexibility:
- Users can now reserve transit dates and submit vessel names up to 15 days in advance.
- Shipping lines are permitted to modify a booking date up to twice with five days’ notice at no extra charge.
- The cancellation penalty structure has been made more favorable, reducing the fee to 80% of the awarded bid amount when a cancellation is made 15 days or more in advance.
The Panama Canal Authority emphasizes that the enhancements are a direct response to evolving market demands, ensuring the critical shortcut remains efficient and cost-effective. A dedicated customer service team will be available starting in mid-October to assist users with the new system.
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Source: gCaptain
