The hydrodynamic interactions between ships in confined waters, restricted in width and depth, is analysed using a numerical surface singularity method called the Panel method. Based on potential flow and rigid free surface assumptions, a source distribution is utilized over the boundary surfaces to model the flow. The strength of the source distribution is obtained on satisfying the normal kinematic boundary conditions, i.e. as a solution of an integral equation. Discretization of the boundary surfaces yields a system of linear algebraic equations corresponding to the boundary integral equation, which then is solved numerically. From the singularity distribution, the velocity components, pressure coefficients and finally the interaction loads are calculated.