Ocean cargo: New developments at Panama Canal announced

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.

<p>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.</p>

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.

in the News

STB reschedules listening session for CSX service issues
AAR reports mixed volumes for week ending September 16
Maersk makes bold bid at differentiation by teaming with CRM giant
Federal Maritime Commission to take closer look at “Fair Port Practices”
CEMA reports unexpectedly strong gains in 2017
More News
By ·

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

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 [email protected]

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!

Article Topics

All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...