- Shipowners opt to take “the long way round” to avoid expensive canal transit fees.
- Authorities of both canals offer inducements to owners to keep using their respective waterways.
- Suez Canal had decided offer rebates of between 60% and 75% on certain routes.
- Panama Canal has adjusted its reservation system such that ships can settle the charge up until when they enter the canal.
Suez and Panama Canals cut owners’ breaks to keep ships transiting as shipowners opt to take “the long way round” to avoid expensive canal transit fees, as the bunker price is very low, reports Maine Log.
Inducements for owners from canals
To address this issue, the authorities of both canals are offering owners inducements to keep using their respective waterways.
Suez Canal Authority
The Suez Canal Authority said that “as an encouragement to owners and operators of containerships coming from ports at the East Coast of America and heading to ports at the South and South East of Asia to pass their vessels through the Suez Canal” it had decided offer rebates of between 60% and 75% on certain routes.
(You can access the relevant Suez Canal Authority circular HERE)
Panama Canal
The Panama Canal said that, “to help mitigate the economic impact of the COVID-19 pandemic,” it was making a temporary adjustment to its reservation system that will provide customers with added flexibility and relief.
Panama Canal relief measures
Payment system tweak
According to a Reuters report, the Panama Canal said that it would make a temporary change to the payment system for ships booking passage through the waterway in order to offer more flexibility to customers affected by the coronavirus outbreak.
The Panama Canal Authority (ACP) said in a statement:
“As of May 4, 2020, the interoceanic highway will implement temporary changes to the requirements for making reservations and the advance payment of reservation fees upon confirmation.”
Payment for booking slot
Ships had to pay fees within 48 hours of making reservations to transit.
Now ships will be able to settle the charge up until when they enter the canal, the ACP said.
The authority said that this measure would take effect for 120 days and will remain in place until Sept. 1.
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Source: Marine Log, Reuters
