International Chamber of Shipping: Panama concerns remain
The London-based International Chamber of Shipping said that while it welcomes the Panama Canal Authority's (ACP) decision to delay its toll increases and extend the consultation period, it remains opposed to the proposal in its current form.
The ICS said its views, unchanged from those published in March, reflect the opinions of its partners in the Round Table of international shipping associations; Intercargo, Intertanko and BIMCO.
“While this amelioration is of course most welcome, those shipping companies who currently have fixed contracts (often of at least 12 months) will still have to absorb a significant cost burden, and we would have hoped that the ACP would also have deferred the implementation date for subsequent years.
“Moreover, the key elements of the initial proposals have remained unchanged and we are disappointed that the main industry concerns regarding the quantum and timing of the proposed increases, as well as the direction of toll increases in the longer term, appear to have been ignored,” the ICS said.
The ACP’s toll increases are designed to fund its $5.25 billion expansion, which will double the corridor's cargo capacity upon its expected completion in about eight years.
Earlier this month, the canal authority said it was postponing the toll increase from May 1 to July 1, although not for all shipping sectors. When asked by Shippers NewsWire if it would also be delaying its Panama Canal Surcharge due for May 1, a spokesman for the Trans-Atlantic Conference Agreement pointed out that the original release has been amended so that the ACP’s delay excludes, by omission, passenger, refrigerated and container vessels.