Ocean Freight Surcharges

PTF Surcharge (Panama Canal Transit Fee)

PTF (Panama Canal Transit Fee): Charge for vessels transiting the Panama Canal. When it applies, typical range, and who pays under common Incoterms.

Code
PTF
Name
Panama Canal Transit Fee
Typical range
$50-$250 per TEU
Routes
Asia-US East Coast, Asia-Gulf, WCSA-Europe, Intercoastal Americas

Panama Canal Transit Fee (PTF) is a surcharge applied by shipping lines to recover the cost of tolls paid to the Panama Canal Authority (ACP). The canal connects the Atlantic and Pacific Oceans, providing a crucial shortcut for trade between Asia and the US East Coast/Gulf, as well as between South America's west and east coasts.

Panama Canal details: • Original locks opened in 1914 • Expanded locks (Neopanamax) opened in 2016, allowing larger vessels • Transit takes 8-10 hours • Tolls based on vessel size (TEU capacity) and cargo

The 2016 expansion significantly increased the canal's capacity, allowing vessels carrying up to 14,000 TEU to transit (vs. 4,500 TEU previously). However, drought conditions in 2023-2024 led to transit restrictions due to low water levels in Gatun Lake, causing delays and increased costs.

PTF is charged on: • Asia to US East Coast/Gulf routes • West Coast South America to East Coast US/Europe • Any route utilizing Panama Canal transit

The fee can fluctuate based on canal authority pricing decisions, water level restrictions, and demand for transit slots.

When PTF applies

Applied on all shipments transiting the Panama Canal.

Who pays PTF under common Incoterms

  • FOB: buyer
  • CIF: seller
  • EXW: buyer
  • DAP: seller

How to minimize PTF

  • Consider US West Coast + intermodal rail as alternative
  • Use Suez routing for East Coast cargo when cost-effective
  • Negotiate PTF caps in service contracts
  • Plan around canal restriction periods if possible

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Frequently asked questions

What is the PTF surcharge?

PTF stands for Panama Canal Transit Fee. Charge for vessels transiting the Panama Canal.

When does PTF apply?

Applied on all shipments transiting the Panama Canal.

How much is PTF?

The typical range is $50-$250 per TEU. Confirm the current amount with your carrier or forwarder.