Subscribe to our free, weekly email newsletter!


Ocean cargo: New developments at Panama Canal announced

image

The Panama Canal is a 77 km (48 mi) ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Annual traffic has risen from about 1,000 ships in the canal’s early days to 14,702 vessels in 2008, displacing a total 309.6 million Panama Canal/Universal Measurement System (PC/UMS) tons.

By Patrick Burnson, Executive Editor
June 17, 2010

The Cabinet Council of the Republic of Panama approved a proposal to modify the Panama Canal pricing structure, following a recommendation from the
Panama Canal Authority (ACP) Board of Directors.

The proposal modifies the pricing structure for all Canal segments: container, dry bulk, liquid bulk, vehicle carriers, reefers, passenger, general cargo and others. Specifically, the ACP will calculate container segment tolls with a slight price adjustment to the capacity charge, and an additional new charge that would apply to the number of loaded containers aboard the vessel at the time of transit.

The newly approved pricing structure includes one amendment to the original proposal, which delays the implementation of the reefer segment increase on the portion applicable to the PC/UMS tons, from January 2011 to April 2011. All other segment pricing modifications will go into effect in January.

“During the past few months we have talked with industry representatives, shipping lines, including government representatives from countries that benefit from the Panama Canal. We have listened to their feedback and have made adjustments to our pricing structure accordingly,” said ACP Administrator/CEO Alberto Alemán Zubieta.

According to Alemán, the ACP selected the tolls implementation date of January 2011 to respond to industry requests of a moratorium on increases in 2010. Also, in response to requests made during the consultation, they have postponed the implementation of the PC/UMS tolls for reefers to April 1, 2011.

“Since the beginning, we have been committed to an open and transparent process with regard to the Canal’s pricing structure. We are focused on providing the safest, most reliable and efficient service for our customers, and the new pricing structure approved by the Cabinet Council reflects this commitment,” Aleman added.

The ACP officially announced its plans to restructure the Canal’s pricing April 27. After a 30-day public consultation period, the ACP conducted a public hearing in Panama City, Panama on June 1, allowing interested parties an opportunity to express their views on the proposal.

On the basis of discussions with industry representatives, shipping lines, and government representatives, as well as the Canal’s own internal analysis, and in view of the world economic situation, the ACP decided not to proceed with a tolls adjustment in 2010 and set January 1, 2011 as the new date for implementing the tolls for all segments except reefers.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA