Panama’s cabinet has approved an amended, simplified toll structure that will lead to higher fees for shipowners transiting the key waterway.
This comes after the Panama Canal’s board of directors recently recommended the adoption of a new tariff structure to reduce the high number of different fees for using the canal.
The Panama Canal will now implement a simplified structure that reduces the number of tariffs from 430 to less than 60.
This simplified system will minimise unnecessary complexity and facilitate transactions by eliminating toll bands and introducing tariffs based on the locks used and vessel size. However, the new structure will lead to a higher bill for shipowners whose vessels traverse the canal.
“Although the Canal’s legacy is already rooted in reliability and resiliency, this new toll structure will enable us to evolve our service further by unlocking greater collaboration and capacity for customers,” Panama Canal administrator Ricaurte Vásquez Morales said.
“By making these changes, we recognise the value of extending greater predictability today, while renewing our commitment to improving customer experience.”
For transits of vessels in ballast condition for all market segments except for containerships, tolls will be calculated by applying 85% of the laden toll instead of the originally proposed 90%.
For containerships, the charge for empty containers will be reduced to $2 per TEU in 2023, $4 per TEU in 2024, and $6 per TEU in 2025, instead of the $5, $6.50, and $8 that were initially proposed for each year, respectively.
The other tariffs will be implemented in stages from January 2023 to January 2025 at the originally proposed levels, including the proposed modifications to the loyalty programme for containerships, which will be phased out by January 2025.
Incentives for return voyages applicable to containerships and liquefied natural gas (LNG) vessels will be eliminated by January 2023 when the new structure comes into effect.
Panama, seeking to up revenues at a time when most shipping sectors have experienced an uptick in trade, follows Egypt’s Suez Canal Authority which fast-tracked the implementation of two toll hikes earlier this year.
