ASIAN SHIPOWNERS RAISE CONCERNS OVER SUEZ, PANAMA CANALS TOLL HIKES

The members of the Asian Shipowners' Association (ASA) have recently spoken out against proposed toll changes at the Panama Canal and the Suez Canal — raising concerns about how the said toll hikes appeared to be done in haste.

 

ASA, whose members include the shipowner's association of China, Hong Kong, Japan, Korea as well as the Federation of ASEAN Shipowners and the Maritime Industry Australia Limited, called on the Suez and Panama canals to defer from "sudden and significant" changes in its tolls and charges.

 

At an April 18 meeting, ASA delegates raised their concerns regarding the recent developments on tolls at the Suez Canal and the Panama Canal — saying that both of which underpin international logistics in an uncertain situation.

 

"Delegates reaffirmed the critical importance for such a global infrastructure of avoiding a sudden and significant change of the tolls and charges, as well as to secure a sufficient prior notice and appropriate explanation by the Authorities," ASA said.

 

"In this connection, delegates expressed their confusion against new surcharges introduced on 1 March 2022 with only 48 hours prior notice, then to be revised on 1 May 2022 by the Suez Canal Authority (SCA), which resulted in roughly a 7 to 20% toll increase for many types of vessels, in addition to a 6% tariff hike for most types of vessels, implemented on 1 February 2022," it added.

 

The Committee then shared its concern that the "high uncertainty" in the mechanism of operating the surcharge may damage the stability and reliability of the Canal.

 

"As for the Panama Canal, delegates were also disappointed by the proposal for the new toll system dated 1 April 2022 by the Panama Canal Authority (ACP), as the mark-up for some types of vessels may exceed 100% in 2025, compared with the current toll," ASA said.

 

ASA: "Avoid radical rate increases"

 

"While some positive elements are included in the proposal such as a sufficient prior notice period with a formal consultation mechanism, delegates shared a recognition that such a significant toll hike may not be compatible to the long term sustainability required to a global infrastructure," it added.

 

The delegates then mentioned that Asian shipowners should submit their comments to the ACP during the formal consultation period to urge the ACP to "avoid radical rate increases, based on the current unprecedented market condition."

 

The ASA meeting also discussed the review of anti-trust exemptions for carriers in the United States, which delegates said was "indispensable for the healthy development of the liner shipping industry and the maintenance of a reliable service to the entire trading community."

 

"Delegates reconfirmed the ASA's long-standing policy that the anti-trust immunity system for cooperative carrier shipping agreements was indispensable for the healthy development of the liner shipping industry and the maintenance of reliable service to the entire trading community," it said.

 

"The Committee commended the ASA for its active support of industry efforts to maintain anti-trust exemptions for liner shipping agreements and urged continued activity in this regard," ASA added.

 

The ASA Shipping Policy Committee (SPC) is a forum for the members of ASA associations to discuss maritime policy issues such as regulation, taxation, trade policy, customs, canals, infrastructure and the macroeconomy, and policy public relations.