A Panama Transit Fee, also called a Panama Canal surcharge, is an additional ocean freight charge used to recover the cost of moving a vessel through the Panama Canal. Shipping lines may pass canal tolls, booking costs, reservation fees, waterway restrictions, or route-related expenses to shippers through this surcharge. The fee may be calculated by container, shipment, vessel size, trade lane, or carrier tariff and can affect the total cost of cargo moving between the Atlantic and Pacific. The underlying Panama Canal toll is charged by the Panama Canal Authority on vessels transiting the canal and is based on vessel size, type, and cargo volume.
- Calculated per TEU or based on vessel dimensions and cargo
- Increases in Panama Canal tolls directly affect freight rates on Asia-to-U.S.-East-Coast lanes
- The 2016 expanded canal locks enabled larger Neo-Panamax vessels to transit
- Shippers can reduce Panama Canal toll impact by routing via the Suez Canal or West Coast ports
Learn more about Dedola’s ocean freight shipping services. Related terms: BAF, GRI.
