Shipping Industry Faces $370 mln Hit From New Panama Canal Charge
A new "freshwater" charge that came in this month to help the Panama Canal cope with climate change will cost the shipping industry up to $370 million a year, marking another blow for maritime companies already hit by fallout from the coronavirus.The Panama Canal, one of world's busiest shipping routes, which handled nearly 14,000 transits last year, said last month it would introduce a charge from Feb. 15 of $10,000 for any vessel more than 125 feet long.The canal, which relies on water from nearby Gatun Lake, has been hit by drought which affects water levels in the chokepoint.
Ships to Face 30% Higher Costs at Panama
The Panama Canal will begin collecting a freshwater surcharge from ships using the waterway from 15th February, as part of actions to address a scarcity of rainfall after the surrounding area recorded its fifth driest year of the last seven decades in 2019.The charge will be set at $10,000 for any vessel over 125 feet long. There will also be a variable surcharge based on the level of the Gatun Lake at the time of transit.The International Chamber of Shipping (ICS) calculate this move will increase costs to ships passing through the Panama Canal by up to 15%.
Four LNG Carriers Transit Panama Canal in One Day
The transit of four liquefied natural gas (LNG) carriers through the Panama Canal’s Neopanamax Locks in a single day marks a new milestone for the canal and reinforces its capacity to handle growing demand from the U.S., where several new LNG export terminals are scheduled to begin operating.On Monday, the vessels Ribera del Duero Knutsen with a cargo capacity of 173,000 m3 and Maran Gas Pericles with cargo capacity of 174,000 m3 transited northbound, while Torben Spirit with a cargo capacity of 174…
4,000th Neopanamax Vessel Transits the Panama Canal
The Panama Canal registered the transit of its 4,000th Neopanamax vessel through the Expanded Canal, underscoring the steady growth of the burgeoning liquefied natural gas (LNG) segment – which began transiting the waterway for the first time following the inauguration of the Expanded Canal.The LNG tanker Maria Energy completed the milestone transit traveling southbound from the Atlantic to the Pacific Ocean on July 29."The steady increase in Neopanamax transits reflect our customers’ confidence in the Expanded Canal…
Drought Causes Draft Restrictions in the Panama Canal
Draught conditions have led the Panama Canal Authority (ACP) to set draft restrictions for vessels operating in the canal. ACP described the restriction as temporary and preventive measure due to the El Niño climate phenomenon resulting in periodic warming of the tropical Pacific Ocean. When this occurs, El Niño changes the pattern of rainfall in many regions of the planet, in this case triggering a drought in the Canal Watershed, causing water levels of Gatun and Alhajuela Lakes to fall substantially below their average for this time of year.
El Nino Onset May Impact Panama Canal Drafts
The Panama Canal Authority closely monitors the water levels of Gatun and Alhajuela lakes on a regular basis due to the importance that these resources have for transit operations. With the onset of the 'El Nino' phenomenon, great efforts have and are being invested in forecasts and estimates of the possible impact this weather phenomenon might have in Panama Canal operations. Additionally, the Panama Canal continues to invest considerable resources and is taking numerous water…
Panama Canal Expansion: Filling of New Locks Begins
The Panama Canal has taken another important step forward toward the completion of the Expansion Program as it begins to fill the lower chamber of its new Atlantic locks. The news signals the start of a deliberate and methodical phase of operational tests and quality control that will, eventually, prepare the Canal to accommodate larger maritime vessels and new segments. Thursday’s progress marks yet another development for an Expansion Program approaching completion. “This event highlights the magnitude of what we have been working on for the past seven years…
Rolling Gates Installation at Panama Canal
In another major milestone for the Panama Canal Expansion Program, the electromechanical installation phase, one of the most important of the project, has begun with the installation of the first steel rolling gate at the Atlantic side. “This year, the Expansion Program completed several milestones towards the completion of the project,” said Panama Canal Administrator Jorge L. Quijano. “I am proud of the progress we have made on this project and the uninterrupted service we have provided to global shipping for 100 years.
Panama Canal Sets Visitor Record
The Panama Canal has set a new record with 963,000 visitors during its centennial year. This is the total number of visitors to the Miraflores Visitor Center in Panama City (Pacific) and the Expansion Observation Center and Gatun Visitor Center in Colon Province (Atlantic). “This is the largest number of visitors received at the Panama Canal in a year,” Panama Canal Administrator Jorge L. Quijano said. This new record represents a 9.6 percent increase compared to fiscal year 2013. Of the total amount of visitors, 70% were foreigners and 30% Panamanian citizens.
Panama Canal Dredging Forces Lane Closure
Beginning Tuesday, April 29, 2014, through Thursday, May 1, 2014, the East lane at Pedro Miguel Locks will be closed to allow the equipment to operate uninterrupted as dredging operations will be conducted at the Gatun Lake entrance on the east side of Perdro Miguel Locks between the center wall and the east prism linem and north of the center wall, GAC said in its daily Hot Port News alert. This dredging work is necessary for the removal of shoals, which have become critical due to the low level of Gatun Lake.
Panama Canal Commemorates 14 Years Under Panamanian Administration
On the countdown to its centennial in 2014, the Panama Canal celebrates 14 years under Panamanian administration, characterized by its enhanced service to world maritime trade. "The Panama Canal has strengthened its role in international trade, while contributing to the country’s development,” said Panama Canal Administrator Jorge L. Quijano. The Panamanian management model has enabled the efficient and safe operation of the Canal, allowing it to offer a world-class service. Under Panamanian administration…
New Panamax Vessel Requirements
The Panama Canal Authority (ACP) issued a release reminding customers that vessels arriving at Canal waters, whether for docking or transiting the Panama Canal, must comply with vessel requirements, as stated in the Maritime Regulations for the Operation of the Panama Canal and OP’s Notice to Shipping No. ACP said the purpose of the advisory is to inform the shipping community of the definitions and requirements applicable to all vessels intending to transit the Panama Canal’s new locks. at 29.4ºC. (Note: Transition to fresh water frequently alters trim of large vessels by the head).
Panama Canal Expansion Moves Forward
The Panama Canal Expansion is moving forward to reach its goal of bolstering the waterway’s capacity in order to provide a better service. To date, the program is 50% complete. “The program continues to progress and reach milestones while we focus the next phases on building the locks,” said Panama Canal Administrator Jorge L. Quijano. Beginning 2013, the Expansion Program has completed several projects. Dredging of the navigational channels has been completed. This included both Canal entrances, on the Pacific and Atlantic sides, as well as Gaillard Cut.
ACP Commemorates 13 Years of Local Administration
The Panama Canal is celebrating 13 years under Panamanian administration. During this period, the Canal has strengthened its role in international commerce as a result of investment in the modernization of its infrastructure, its expansion and an alliance with its natural surroundings. “The Panama Canal reaffirms its relevance in international commerce more than ever as a result of the decisions and actions that Panamanians have taken with regard to its management,” said Panama Canal Administrator Jorge Luis Quijano.
Panama Canal Expansion 5-Year Update
Five years ago, the Panama Canal Expansion broke ground at Paraiso Hill & the latest update shows progress estimated at 44.5%. "The Panama Canal Expansion Program is moving forward at a good pace. The program has made positive contributions to Panama´s economy such as direct employment, investments, knowledge and technological transfer, said Panama Canal Administrator/CEO Jorge L. Quijano. Three of the four dry excavation projects have been completed and the 4th project reached 67% through August 31, 2012.
Milestone in Panama Canal Expansion Reached
Panama Canal Completes Major Step in Expansion Program. In another important milestone of its Expansion Program, the Panama Canal Authority announced the completion of phase three of the dry excavation project in the construction of the Pacific Access Channel (PAC). The Pacific Access Channel will connect the third set of locks with the Culebra Cut and Gatun Lake. The third phase of the PAC – costing $36.6 million including design, contractors and management – consisted of excavating 8.2 million cubic meters of materials…
Panama Canal CEO on Progress of Expansion
Panama Canal Authority (ACP) Administrator/CEO Alberto Alemán Zubieta addressed hundreds of participants at this year’s International Navigation Organization’s (PIANC) 32nd Congress May 11 in Liverpool, United Kingdom. During his keynote address, Zubieta spoke about the Panama Canal Expansion Program and briefed the audience on the project. To date, 100 percent of the excavation work has been completed for the first two phases of the Pacific access channel and close to 30 percent…