Panama officially approves canal toll modifications

The modified toll structure offers better rates per loaded container on the return voyage for Neopanamax vessels deployed on the canal route, according to the Panama Canal Authority (ACP).    The Cabinet Council of the Republic of Panama on Aug. 8 officially approved a proposal to modify the Panama Canal tolls structure, following a recommendation from the Panama Canal Authority (ACP) Board of Directors.
   The newly approved modifications, which lower rates for containerships, were first approved by the canal authority’s board of directors on May 25. Then on July 5, the ACP held a public hearing on the tolls structure modifications proposal, following a 32-day formal consultation period for industry feedback.
   The toll modifications offer better rates per loaded container on the return voyage for Neopanamax vessels deployed on the canal route in the head and back haul legs. Containerships will only receive the new rates if they follow mandated standards, including that the utilization rate for a ship’s northbound transit is greater than or equal to 70 percent; and the time between the northbound and southbound transit is no longer than 28 days.
   Tolls for LPG and LNG vessels are also being modified, but the units of measurement won’t change. The vessels are being reclassified as “container/breakbulk” within the “general cargo” segment, rather than the current “others” segment.
   Additionally, container/breakbulk vessels which were formerly part of the “others” market segment, are being reclassified into the “general” cargo segment, thus resulting, according to the ACP, in “more attractive” tariffs for customers, since general cargo tolls are lower.
   The ballast tariff will be applied to the LPG vessels transporting up to two percent of the total cubic meters of LPG cargo capacity of the spaces designed and certified for such use. Regarding LNG vessels, the ballast tariff will be applied to LNG vessels transporting up to10 percent of the total cubic meters of LNG cargo capacity of the spaces designed and certified for such use.
   The operators that use the same LNG vessel for a voyage to and return from a specific destination through the Panama Canal, will pay the laden tariff for the laden portion of the trip, and would be eligible for the roundtrip ballast fee if the return transit in ballast is made within 60 days after the laden transit.
   The approved changes were proposed, according to the authority, after an analysis of utilization and productivity of the Neopanamax Locks, and after meetings with Panama Canal executives, customers and industry representatives in Europe, Asia and North America. The meetings, according to the ACP, provided a deeper understanding of the industry today, the challenges faced by individual market segments, and the projected demand for the Neopanamax Locks.
    “The modified tolls will safeguard the Canal’s competitiveness, charge a fair price for the value of the route and provide a competitive service to the global shipping industry,” Panama Canal Administrator Jorge L. Quijano said in a statement.
   The newly approved tolls modifications are scheduled to go into effect on Oct. 1, at the beginning of the Canal’s new fiscal year. Full details on the tariffs are available in English on the Panama Canal Authority’s website.