The Panama Canal Authority has introduced a new "Disruption Charge" tariff — which took effect on January 1, 2023 — that would charge vessels for causing disruptions and delays to transit schedules in the canal.
Panama correspondents C. Fernie & Co SA advised that Panama Canal Authority issued the new levy through its Advisory to Shipping No. A-38-2022.
According to the Panama Canal Authority, this charge aims to minimize the possibility of delays and/or disruptions to the operation by reducing vessel incidents during transit and encouraging vessels to fix the deficiencies or report them in a timely manner if they cannot be corrected.
Source: Panama Canal Authority
The Authority noted that the "Disruption Charge" is part of a broader effort to ensure the efficiency, reliability and uninterrupted operation of the canal — a major transit point for global trade.
Panama Canal, which connects the Atlantic and Pacific, handles over 14,000 transits per year.
"The charge is applicable to vessels that present deficiencies that arise during transit. The charge will be classified as low or high, depending on the type of deficiency and the time it is reported or detected," the advisory added.
The Panama Canal Authority further said that the disruption charge would be in addition to other applicable maritime service charges such as tugs, line handlers, moorage, and pilotage.
Meanwhile, it added that some deficiencies that may cause the application of the disruption charge are:
- Anchor missing or anchor windlass inoperative
- Inoperative Bow thruster
- Non-compliant Chocks and bitts
- Compressor or air problems
- Inoperative Rudder angle indicators and other navigation equipment
- Inadequate boarding facilities g. Inoperative whistle
- Engine or propeller problems
- Excessive draft or drag
- Bridge wings do not extend to the side of the vessel
- Protruding cargo or visibility obstructed by cargo or cargo gear
- Inadequate sanitary facilities
- Inoperative or improper Air Conditioning system
- Slow winches
- Wires on drums
- Fuel not in compliance with the Panama Canal's manoeuvring fuel requirements.
The Panama Canal Authority said vessels that present or develop deficiencies while in transit will have 30 minutes from the time the deficiency is reported or detected, to correct the deficiency or condition to avoid the application of the disruption charge.
"The disruption charge applicable to dead tows and dead ships will be based on the dimensions of the tow or vessel," the advisory noted, explaining that in this case, a "dead tow" is a vessel that does not have installed means of propulsion.
A "dead ship," on the other hand, is a vessel that has installed means of propulsion which do not function during transit.
According to the ACP, the "Disruption Charge" will be assessed on a case-by-case basis, considering the impact of the disruption on canal operations and the duration of the delay.
The charges will then be calculated based on a fixed rate per ton of cargo or vessel displacement and capped at a maximum amount.
Amid mixed reaction from industry stakeholders, the ACP emphasized that the "Disruption Charge" are intended to be a fair and transparent means of addressing the impact of disruptions on canal operations.
The ACP has also noted that it will work closely with vessel operators to minimize disruptions' impact and ensure that they are handled promptly and efficiently.