The Panama Canal announced a new program called Long-Term Allocation (LoTSA) that will run from January 3 to April 3, 2027. This program addresses both categories of locks, namely Neopanamax and Panamax, for the first time. LoTSA for Neopanamax allows customers to better plan their operations and easily schedule by securing transit slots in advance during the dry season.
Details of the LoTSA Program
The LoTSA program enables customers to reserve transit slots in advance, which enhances travel planning and improves supply chain reliability. This program will be implemented through sealed bid competitions, and a specialized customer service team will be available to provide support to participants.
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The competition for the Neopanamax LoTSA program will take place on November 17, 2026, while the competition for the Panamax LoTSA pilot program will occur on November 24, 2026. The Neopanamax LoTSA program includes 36 packages, providing a total of 270 slots (165 slots northbound and 105 slots southbound) for transit. These packages will be equivalent to three daily transit slots throughout the program period.
Responding to Customer Needs
On the other hand, the new pilot program LoTSA for Panamax locks includes 51 packages and a total of 288 slots (147 slots northbound and 141 slots southbound), which will also be equivalent to three daily transit slots during the program period under a single level of flexibility. These packages will also be offered through sealed bid competitions and will follow the same allocation mechanism, selection criteria, and tie-breaking rules used for the Neopanamax LoTSA program.
It is worth noting that the remaining capacity for transit will still be offered through the regular reservation system and auction process, as it currently exists. With the Neopanamax LoTSA and Panamax LoTSA programs, the Panama Canal reaffirms its commitment to continuously improving services, operational efficiency, and reliable solutions for international maritime trade.
This program is particularly important under current operational conditions, as the Panama Canal implements measures to ensure the sustainability of its operations in response to weather conditions affecting water availability. Through LoTSA, canal customers can reserve transit slots, which enhances travel planning and increases supply chain reliability.
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