Executive Briefings

Pricing for Panama Canal Has Been Changed by Governing Authority

The Cabinet Council of the Republic of Panama has 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.

An amendment to the original proposal delays 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. For instance, we 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, we have postponed the implementation of the PC/UMS tolls for reefers to April 1, 2011," said ACP Administrator/CEO Alberto Alemán Zubieta.

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The Cabinet Council of the Republic of Panama has 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.

An amendment to the original proposal delays 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. For instance, we 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, we have postponed the implementation of the PC/UMS tolls for reefers to April 1, 2011," said ACP Administrator/CEO Alberto Alemán Zubieta.

Read Full Article