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Operations & Capacity3 min read

Canal Capacity Constraints: How Draft Limits Become Demurrage and Default

A six-inch draft reduction sounds trivial. Across a Neopanamax parcel it is thousands of tonnes of cargo that either does not sail or sails on a second vessel. Both outcomes move a delivery date, and moved delivery dates are where contractual penalties and payment disputes begin.

Draft restrictions are a cargo tax, not a delay

Congestion and closure delay a vessel. A draft restriction does something different: it reduces how much that vessel can legally carry.

An operator facing a lower limit has three options, all of them expensive. Load less and sail with the same fixed voyage costs spread over fewer tonnes. Split the parcel across a second vessel and pay for both. Or transship, adding a port call, handling costs and several days.

None of these appear as a delay in a schedule report. They appear as margin compression on a voyage that otherwise looks normal, and that is precisely why they are easy for a credit team to miss.

Slot allocation and the laycan problem

Capacity is also rationed through daily transit slots and booking auctions. When slots tighten, the price of a guaranteed transit rises and the availability of an unbooked one falls.

A vessel that cannot secure a slot waits. A vessel that waits misses its laycan. A missed laycan means the charterer can cancel, or can demand compensation, or can renegotiate, depending on the contract. Every one of those outcomes puts an invoice into dispute.

Demurrage and detention charges then accumulate daily against whichever party is contractually exposed, and the argument about who that is takes longer to resolve than the delay itself did.

Why postponements matter as much as cuts

The September postponement is a useful illustration of a broader point. Canal conditions move in both directions, sometimes within weeks, and operators plan voyages months in advance.

A charterer who fixed a vessel on the assumption of a 47.5ft limit and now faces a 48.0ft limit has an unexpected gain. One who fixed on 49.5ft and faces 48.0ft has a loss. Neither planned badly. The parameter moved.

For a credit team, the relevant fact is that this volatility sits on top of already compressed margins in a market where the Suez alternative is compromised by Red Sea risk. Operators have fewer levers than usual.

The signal worth tracking

Canal-related stress is visible in scheduling behaviour before it is visible in accounts. Vessels waiting longer for slots. Routings changed to avoid the canal entirely. Cargo splits appearing where they did not before.

A credit team that can see a laycan miss coming has time to talk to the counterparty. One that learns about it when a penalty is invoked is already in a dispute.

What CERTY does about this

Live schedule and routing visibility lets a credit team see a laycan miss coming before the penalty clause is invoked. Vessel-level tracking surfaces the waiting times, cargo splits and route changes that indicate a counterparty is absorbing canal-driven cost, well ahead of the financial reporting that would eventually confirm it.

FAQ

Frequently Asked Questions

  • What is the current Panama Canal draft limit?

    As of mid-September 2026 the maximum authorised draft for Neopanamax transits is 14.63m (48.0ft) tropical fresh water. A planned reduction to 47.5ft was postponed on 4 September and the current limit remains in place until further notice.

  • How do draft restrictions affect shipping costs?

    They reduce the cargo a vessel can legally carry, forcing partial loading, cargo splits across additional vessels, or transshipment. Fixed voyage costs are then spread across less cargo, compressing margins without producing any visible schedule delay.

  • What is a laycan and why does missing one create credit risk?

    A laycan is the agreed window during which a vessel must present for loading. Missing it can entitle the charterer to cancel or claim compensation, putting the associated invoice into dispute and delaying payment regardless of which party is ultimately at fault.

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Portrait of Michel GrebenikofMG
Written by

Michel Grebenikof

Co-Founder & CEO

Michel brings two decades of global leadership across energy, industrials, and entrepreneurship to CERTY. Before co-founding CERTY, he served as Group Chief HR Officer and Group Head of Transformation at one of the world’s largest commodity producers and traders — a $12 billion revenue conglomerate — where he led organizational and strategic transformation across 45 countries and 28,000 employees. He previously co-founded Twistr and helped take it to become Europe’s second-ranked AI-based technology company, winning multiple international awards. An INSEAD MBA and Shell “Potential CEO” alumnus, Michel combines large-enterprise transformation experience with hands-on startup building — the same discipline now driving CERTY’s mission to bring real-time, data-driven credit intelligence to global maritime trade.

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