Panama Canal offers small concessions to pacify lines

ACP will offer a 20% reduction on a US$72 per teu toll levied on laden container vessels for any ship transiting the canal carrying 30% or less of nominal capacity.
What is effectively a temporary redefinition for vessels transiting in ballast will last four months after it comes into effect on June 1. Container lines, which have been struggling with up to a 25% reduction in global volumes following the collapse in world trade, had lobbied to postpone a US$9 per teu toll increase introduced last Friday.
Their pleas have been ignored, although the ACP has offered some concessions to the sector, which accounts for more than half of its revenues of US$2.1bn a year.
Reluctance to offer more generous discounts came as no surprise to shipowners, who had been lobbying for some relief.
“This is in line with what we had been expecting,” International Chamber of Shipping (ICS) secretary-general Tony Mason said.
“We are grateful for any help, but disappointed that what [the ACP] has offered is of limited duration, as I do not think our economic problems will be behind us by September.”
As well as relaxing its definition of ballast it said it would also become more flexible regarding its booking system, a move that will benefit all users.
“Demonstrating sensitivity to customer needs during these uncertain economic times, the Panama Canal Authority announced today a temporary plan that will provide short-term cost reduction and greater flexibility to its reservation system,” it said in a statement.
Under the concessions, the largest vessels using the canal will be offered a US$5,000 reduction on the base fee for bookings, a discount of 14%, but offering a saving of as little as 1% on the total cost of transiting the waterway.
Late arrival fees will also be reduced and the notice time required to swap vessels for booked transits without incurring penalties will be reduced from 60 days to 30 days, said the ACP.
Its measures have stopped well short of demands by the ICS. Under the charges introduced this week, a vessel with a capacity of 4,300 teu will see the tolls it pays to transit the waterway increase from US$270,900 to more than US$309,600.
The largest vessels using the transit reservation system will now pay US$30,000 to avoid delays at times of congestion. After adding the cost of tug assistance the total cost of transiting the waterway comes to more than US$350,000 per voyage.
With delays on the decline, utilisation of the booking system has fallen by 15.6% from 94.3% to 79.6% in the second quarter of the ACP’s fiscal year as container lines seek cost savings.
ACP volumes were down 3.3% to 78.4m Panama Canal universal measurement tonnes in the same period in line with ACP forecasts, showing the waterway’s continued resilience in the face of a sharp downturn in world trade.
The ICS will continue to engage in dialogue with the ACP in an effort to extend the temporary relief offered, and has promised to go in “with all guns blazing” when the review process for 2010 tolls begins at the end of the year