A letter from the global shipping industry (attached at Annex A) was sent yesterday to the Panama Canal Authority (ACP) in response to changes announced to canal fees for transit reservation and other maritime services (OMS) ( attached Annex B & C ) . These fee changes (full details in CAN(21)01) are due to come into effect from 15 April 2021. The letter, co-signed by ASA and ECSA, outlines industry concern about the extent and speed of the price increases and demands further justification for their implementation. It requests that the ACP provide details of a long-term strategy to mitigate ongoing congestion issues reported at the Neopanamax locks, and proposes a meeting with the ACP to discuss these and other issues of ongoing concern. Thanks are due to members’ for comments and suggestions provided on the draft letter released under CAN(21)02, and members are encouraged to contact the undersigned (georgia.spencer-rowland@ics-shipping.org) with any additional concerns raised by member companies concerning use of the Panama Canal. 


Background 

As detailed in CAN(21)01 and CAN(21)02, the Secretariat was advised by the Panama Canal Authority (ACP) Administrator, Dr Ricaurte Vasquez, of changes to fees for the canal’s transit reservation system and for other maritime services (OMS) applicable to users of the Panamax and Neopanamax locks. 

These changes are due to come into effect from 15 April 2021, and include increases in fees for transit reservation which would add a maximum additional amount of $58,500 per transit reservation for selected vessel types. The ACP reports that the changes are intended to respond to changing market conditions, and manage capacity in the face of growing demand. A summary and full breakdown of the above fee changes can be found in circular CAN(21)01. 

Industry letter sent to the ACP 

In response to the fee changes a letter (attached at Annex A) was sent yesterday to the ACP, highlighting industry concern about the extent and speed of the fee increases brought about by these modifications. 

The letter stipulates that a longer notice period (3 months) should be required for such a substantial increase in cost for transit of the Panama Canal, and demands further justification for the changes to fees for Other Maritime Services (as has historically been provided by the ACP to industry). It further requests that the ACP provide details of a long-term strategy to mitigate ongoing congestion issues reported at the Neopanamax locks, and proposes a meeting with the ACP to discuss these and other issues of ongoing concern. 

Members will be kept informed of any response received to this letter, and are encouraged to contact the ICS Secretariat  (georgia.spencer-rowland@ics-shipping.org) any additional concerns raised by member companies concerning use of the Panama Canal.