Panama Canal extends discounts
The Panama Canal Authority said Thursday it will extend the discount program introduced in June to provide short-term cost reductions and greater flexibility to its reservation system through the end of April 2010.
The program, which consists of temporary measures designed to help mitigate the impact of the economic crisis on the shipping lines that use the canal, was the result of consultations with customers and was initially introduced June 1 for four months ending Sept. 30.
The canal authority said it agreed to extend the program at the request of its customers and of the Round Table of International Shipping Associations.
“The ACP is committed to keeping an open dialogue with its customers through these uncertain economic times,” said Alberto Aleman Zubieta, the authority’s CEO.
Our customers find value in the temporary measures, and for this reason we are extending them,” Aleman said.
The two primary components of the temporary measures are:
-- A redefinition of ballast (ships without passengers and cargo) for full container vessels transiting the Canal; and,
-- modifications to the reservation system to increase flexibility and reduce fees.
The temporary redefinition of the ballast charge for full container vessels allows a ship that carries 30 percent or less of its capacity to be charged the ballast rate of $57.60 per 20-foot container, which is $14.40 less than the rate of $72 per TEU for laden ships.
The reductions in the base reservation price for all segments that use the canal’s reservation system will continue. As an 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 $5,000 less per transit than the rate that was in effect last May.
Vessels that fail to arrive on schedule have the option to pay a reduced charge to keep the reservation and transit that same day. This temporary measure provides shipping lines with greater flexibility. The percentage reduction varies depending on the vessel’s arrival time.
Canal customers will continue to be able to request slot substitutions without additional costs up to 30 days before the date of a vessel’s transit.
Previously, customers could make such requests without an additional charge if that request was made at least 60 days prior to the date of transit. This temporary measure grants shipping lines more flexibility for slot substitutions, allowing them to replace one vessel for another with similar dimensions.
The program, which consists of temporary measures designed to help mitigate the impact of the economic crisis on the shipping lines that use the canal, was the result of consultations with customers and was initially introduced June 1 for four months ending Sept. 30.
The canal authority said it agreed to extend the program at the request of its customers and of the Round Table of International Shipping Associations.
“The ACP is committed to keeping an open dialogue with its customers through these uncertain economic times,” said Alberto Aleman Zubieta, the authority’s CEO.
Our customers find value in the temporary measures, and for this reason we are extending them,” Aleman said.
The two primary components of the temporary measures are:
-- A redefinition of ballast (ships without passengers and cargo) for full container vessels transiting the Canal; and,
-- modifications to the reservation system to increase flexibility and reduce fees.
The temporary redefinition of the ballast charge for full container vessels allows a ship that carries 30 percent or less of its capacity to be charged the ballast rate of $57.60 per 20-foot container, which is $14.40 less than the rate of $72 per TEU for laden ships.
The reductions in the base reservation price for all segments that use the canal’s reservation system will continue. As an 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 $5,000 less per transit than the rate that was in effect last May.
Vessels that fail to arrive on schedule have the option to pay a reduced charge to keep the reservation and transit that same day. This temporary measure provides shipping lines with greater flexibility. The percentage reduction varies depending on the vessel’s arrival time.
Canal customers will continue to be able to request slot substitutions without additional costs up to 30 days before the date of a vessel’s transit.
Previously, customers could make such requests without an additional charge if that request was made at least 60 days prior to the date of transit. This temporary measure grants shipping lines more flexibility for slot substitutions, allowing them to replace one vessel for another with similar dimensions.