An article came out in Break bulk about Panama freezing canal tolls, which is much appreciated by the shippers, but that freeze is only for the month of May. In June they are scheduled for another rate hike and the shipping industry is concerned as expressed by the headline "Lost cause in Panama" in Lloyds list.
The Lloyds article goes on to say "SHIPPING will receive news of further hikes in the cost of transiting the Panama Canal with its usual relish.
The International Chamber of Shipping, the World Shipping Council and container lines in particular will be sharpening their knives for the latest round of sabre-rattling in Panama in June."
This is an extremely important issue for Panama In essence it is kind of like a Mexican standoff. Shipping is threatening to reroute and bypass the canal if they continue to raise rates and the Canal Authority needs the rate hikes in order to pay for the canal expansion and are holding their ground. The shipping industry continues to have tough times with idle ships and deepening losses just at a time when the canal needs increased revenue in order to reach its goals. It should be interesting to see who wins out.
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