Things seem to be heating up on the canal toll increase issue with this latest salvo from ship owners. I have read elsewhere where Panama thinks it may gain with the world economic downturn because of its strategic position and that there are few economic alternatives for shippers. I really don't know enough about the shipping route dynamics, but I do know that the canal expansion project required continued increased transits and increased tolls to be feasible. Based on the world situation, one would have to come to the conclusion that economic feasibility is not the most important factor governing the project.
Excerpts; From Lloyds lists
Excerpts: Janet Porter - jueves 29 enero 2009
SHIPOWNERS are urging the Panama Canal Authority to cancel planned toll increases while cutting more Suez Canal transits as soaring costs and collapsing markets threaten to drive some operators out of business. BIMCO, Intercargo, Intertanko and the International Chamber of Shipping have written to the ACP warning that there were now "serious concerns about the industry's ability to sustain a further increase" after significant price hikes over the past two years.
The letter to ACP administrator Alberto Aléman Zubieta said the economic landscape has changed considerably since the three year programme of increases was first announced two years ago.
"The current global economic crisis has already had a severe effect on many ship operators — freight rates and volumes in most sectors have been badly impacted and the severe downturn is expected to last throughout 2009 and well into 2010," the Round Table group told Mr Aléman.
"In the space of a very short period of time, the situation has changed so rapidly that some regular services have already been cut and there are fears that some owners/operators will not survive."
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