UPDATE: Feb. 19, 2020:  The Panama Canal h2o surcharges took effect Saturday at the following levels, a Panama Canal Authorisation spokesperson told Supply Concatenation Dive:

  • $2,500 per transit for vessels with a length overall (LOA) more than 125 feet and up to 200 feet.
  • $v,000 per transit for vessels with LOA more than 200 feet and up to 300 anxiety.
  • $ten,000 per transit for vessels with LOA over 300 anxiety.

As the new fees accept effect, the carrier community has voiced opposition.

"The industry is currently facing increased price pressures globally, as demand has been hitting hard by coronavirus and markets are adjusting to the new regulations on sulphur levels,"Guy Platten, secretary general of the International Chamber of Aircraft said in a statement.

Dive Brief:

  • The Panama Culvert will charge two new fees and change its reservation system to adapt to celebrated drought that leaves the canal curt on the water resources it requires, the Panama Canal Authority appear this week. Adjustments will brainstorm Feb. 15.
  • The fees include a new Freshwater Surcharge that affects vessels greater than 125 feet length overall (LOA) and a Vessel Visit Creation Fee that will have two levels depending on the ship'due south size. The new booking system will crave ships to pay booking fees in full "no later than 48 hours depending on the booking flow," the potency said.
  • "Without fee and operational changes, the Canal's water levels are projected to drop to levels that would bear upon the Neopanamax and Panamax Locks," the release said.

Dive Insight:

The lakes that feed the canal locks are struggling after "several years" of below-average pelting and a ten% increment in evaporation resulting from warmer conditions. Last year, rainfall around the Panama Canal was 20% below average and added upward to the fifth driest year in the last lxx years, the potency said in a recent study.

The culvert implemented draft restrictions on carriers to reduce the amount of cargo carried. A spokesperson for Maersk told Supply Concatenation Dive concluding year that the restrictions resulted in the carrier being "unable to serve all the prospective end-customers, who otherwise would be utilising the canal as a route to the [U.S. East Coast] as well as Europe."

The authority plans to increase its investment in projects that address the sustainability of the water supply.

Fee Rate
Freshwater Surcharge A fixed fee of $x,000 and a variable fee ranging from 1% to ten% of the vessel's toll volition be applied based on Gatun Lake levels (higher water levels mean a lower fee). Applies to all boats longer than 125 feet LOA.
Vessel Visit Creation Fee $5,000 for vessels 91 anxiety in beam and over, $1,500 for vessels over 125 LOA, just less than 91 feet in beam. Will be deducted from the tool invoice in one case the ship is in transit.

SOURCE: Panama Culvert Potency

The Panama Culvert is also changing the number of daily reservation slots available. There volition be six slots for regular ships, thirteen slots for supers and eight slots for Neopanamax ships.

"Together, the new measures will allow the Panama Culvert to better conceptualize the number and type of ships transiting the waterway, and therefore allocate water resource accordingly," the release said.

The culvert outlined 4 steps it is currently using to combat water shortages.

  1. No longer using the Gatun Hydroelectric Plant to generate power.
  2. No longer using hydraulic assistance at the Panamax Locks.
  3. Allowing for tandem lockages, 2 ships transiting the culvert at the same time. This is only possible if the ships are small enough.
  4. Using of water-saving basins at the Neopanamax Locks.

"Every bit for long-term solutions, the Canal is considering various options, which include, but are not express to water desalination systems and the optimization of water distribution networks to minimize water loss," a spokesperson for the Panama Canal Authority told Supply Chain Dive. "The Canal too expects to finish a series of studies effectually midyear on proposals to build new reservoirs or aqueduct water from other sources to the lakes."

Starting Feb. 15, the authority will make real-time data on Gatun Lake levels available on the culvert's website, since the new fees are partially determined by this information, a spokesperson for the canal told Supply Chain Dive.

The drought has taken a fiscal toll. A canal spokesperson told Supply Chain Dive concluding year information technology expects to lose $fifteen million, which is about .5% of the canal's total annual revenue, as a result of this year's drought.

If the culvert continues to deal with the drought with cargo reduction measures then information technology could risk losing market share to either the Suez Culvert or West Coast ports, experts said.