THE Panama Canal has expanded its Long-term Slot Allocation programme to include the Panamax locks for the first time, extending a mechanism designed to give carriers guaranteed transit access during the traditionally challenging dry season.

The latest phase of the Long-term Slot Allocation, or LoTSA, programme will cover the period from January 3 to April 3, 2027, and comes as canal authorities continue to balance operational reliability against ongoing concerns over water availability.

LoTSA has previously been limited to the larger neopanamax locks. Under the new arrangement, customers using both Panamax and neopanamax locks will be able to bid for packages of transit transit reservations through sealed-bid competitions held later this year.

The Panama Canal Authority said the move would provide greater predictability for customers planning voyages through one of the world’s most important maritime trade arteries, allowing carriers to secure transit capacity months in advance during a period when drought-related restrictions have historically disrupted operations.

The competition for neopanamax slots is scheduled for November 17, while the new Panamax pilot programme will be auctioned on November 24.

For the neopanamax locks, the canal will offer 36 packages comprising 270 transit slots, equivalent to three daily reservation slots across the programme period. Of these, 165 will be northbound and 105 southbound.

The Panamax pilot programme will offer 51 packages covering 288 transit slots, split between 147 northbound and 141 southbound transits. The canal said the allocation process, selection criteria and tie-breaking mechanisms would mirror those already used in the neopanamax scheme.

Remaining capacity will continue to be made available through the canal’s standard reservation and auction systems.

The expansion of LoTSA comes after the the PCA eased drought-related restrictions last week following improved rainfall and the success of water-saving measures across the watershed.

The authority raised the maximum neopanamax draft to 49 ft and increased daily neopanamax transits to 10, partially reversing cuts announced in September as officials sought to conserve water in Gatún Lake.

The move followed warnings from administrator Ilya Espino de Marotta that a severe El Niño could force daily transits down to 27 vessels or fewer during the first quarter of 2027 — reviving memories of the 2023-24 drought, when capacity fell to just 22 ships a day and auction premiums for scarce slots soared.

In other news, the canal authority has also announced that engineer Miguel Lorenzo Fábrega formally assumed office as deputy administrator on October 1 as part of Espino de Marotta’s leadership team.