The Panama Canal Authority''s (ACP) set of temporary measures ''designed to help mitigate the impact'' of the global downturn on the canal''s clients will no doubt bolster the waterway''s finances too.
ACP has been hit by the economic downturn as shippers avoid the waterway in search of cheaper routing options bypassing the Canal, or transit the waterway with much lower volumes.
The temporaray rescue package involves two primary components: a redefinition of ballast and modifications to the reservation system to increase flexibility and reduce fees.
The first measure modifies the definition of ballast for full container vessels and will allow a ship that carries 30% or less of its capacity to be charged the ballast rate of $57.60 per teu, $14.40 less than the $72 laden (ships with cargo) rate.
The second will lower the base reservation price for vessels that use the ACP's Reservation System. For example, the base reservation price for a super vessel, with a beam greater than or equal to 100 feet and a length greater than or equal to 900 feet, is reduced by $5,000 per transit. It will also reduce charges on late arrivals, and shipping will now have 30 days before the date of a vessel's transit to request slot substitutions without additional costs.
These measures will start June 1 and continue through to the end of September this year.
