The Panama Canal announced modifications to the variable component of the Fresh Water Charge (FWC) effective October 1.

To ensure optimal management of the Panama Canal's water resources, the Canal authorities have decided to modify the variable component of the Fresh Water Charge (FWC) to reserve water and improve the lake levels in the Canal area, which have been affected by the recent lack of rainfall.

The Panama Canal Authority (ACP) said in a statement that this FWC adjustment, and given the current level of Gatun Lake, Panama Canal customers will see a reduction of approximately 50% in the variable rate compared to the current formula. 

The average reduction for a Neopanamax vessel will be B/.19,700 per transit, and for a Panamax vessel, B/.6,800 per transit.