Panama Canal toll hike gets green light

Panama Canal toll hike gets green light    The Republic of Panama's cabinet council Wednesday approved the Panama Canal Authority’s controversial recommendation for a new measurement system and large toll price increases for full container vessels and other vessel types with on-deck container carrying capacity.
   Under the proposal, fully cellular containerships will be charged based on their 20-foot equivalent unit (TEU) container carrying capacity, replacing the current “Panama Canal/Universal Measurement System” (PC/UMS) tonnage. The proposed toll will be implemented over three years as follows:
   * $42 per TEU, from May 1, 2005.
   * $49 per TEU, from Jan. 1, 2006.
   * $54 per TEU, from Jan. 1, 2007.
   Representatives of the international shipping industry, including London-based International Chamber of Shipping and the Washington-based World Shipping Council, opposed the Panama Canal Authority’s proposal saying it would represent a 68.75 percent increase over current toll charges.
   “The difference between the average price per container transiting the canal now and the price by May 1, 2007, of $54 is approximately $20,” the Panama Canal Authority said in a statement.