A numerical study on bank effects in shallow channels is carried out by using a first-order Rankine source panel method. A container ship sailing along a vertical bank and a sloping bank at different forward speeds, different water depths and different distances between the bank and the ship hull is taken as example. The sway force and yaw moment acting on the hull are calculated and the influences of the speed, water depth and distance between the bank and ship hull on the hydrodynamic force and moment are analyzed. This study can provide insight into the bank effects, as well as to give guidance on ship manoeuvring and control in restricted waterways, which is helpful to the navigation safety. © 2011 Shanghai Jiaotong University and Springer-Verlag Berlin Heidelberg.