{"id":40283,"date":"2022-04-17T14:56:31","date_gmt":"2022-04-17T19:56:31","guid":{"rendered":"https:\/\/pancanal.com\/?p=40283"},"modified":"2023-09-20T15:30:06","modified_gmt":"2023-09-20T20:30:06","slug":"recalibrating-the-panama-canals-tolls","status":"publish","type":"post","link":"https:\/\/pancanal.com\/en\/recalibrating-the-panama-canals-tolls\/","title":{"rendered":"Recalibrating the Panama Canal\u2019s Tolls Structure to Unlock a New Era for Growth"},"content":{"rendered":"

This piece originally appeared on Administrator Ricaurte V\u00e1squez Morales\u2019s LinkedIn Page<\/a>. Follow him or the Panama Canal<\/a> on LinkedIn to receive the latest commentary and updates from the waterway.<\/p>\n

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Click to enlarge<\/figcaption><\/figure>\n

Last month marked the second anniversary of the World Health Organization declaring COVID-19 a global pandemic. Even though the supply chain\u2019s resiliency was put to test over the last two years, the joint efforts of everyone involved guaranteed the safe and sustainable flow of essential goods around the globe.<\/p>\n

Our business has undergone numerous changes in history. While the Canal has been able to provide a safe and reliable service through numerous global challenges, we are constantly finding ways to anticipate industry needs and align with global priorities, demonstrating the value of the Panama Canal\u2019s service to the world.<\/p>\n

When I took up the post of Canal administrator in 2019, I saw a growing opportunity to elevate the waterway\u2019s service and value amid growing shifts in global trade. At the same time, with the uncertainty facing the world, customers asked the Canal for price predictability.<\/p>\n

Recent changing market conditions confirmed that these two visions for the future of the Canal could be reconciled. To be implemented, however, they would require reshaping our core business structure to mirror how customers operate today, as well as use and find value in the Panama Canal\u2019s service. For this reason, on April 1, we presented the industry with a proposal for a new simplified tolls structure. The proposed changes will not only modify the Panama Canal\u2019s tolls structure. Instead, they will recalibrate our overall business structure to line up with customers\u2019 and industry\u2019s goals.<\/p>\n

This proposal marks the start of a new era for the Panama Canal \u2014 one focused on maximizing the value the waterway creates, captures, and renders to customers in today\u2019s new trade landscape and moving forward.<\/p>\n

Collaborating on a Simpler, More Predictable, Value-based Structure<\/strong><\/p>\n

To better align our business with customer and industry goals, we knew first that providing more value-based service and price stability would need to be the key pillars of our new tolls structure.<\/p>\n

For certain market segments, the Panama Canal\u2019s current tolls structure had become overly complex, leading to confusion and misinterpretations, and not reflecting the value provided to each vessel. In addition, customers were requesting predictability in a highly volatile business environment.<\/p>\n

To ensure we developed an informed and balanced proposal, we consulted with maritime associations and customers during the planning process, allowing them the opportunity to review and share feedback on our ideas.<\/p>\n

Our proposal centers around the following key changes aimed at fulfilling three main objectives:<\/p>\n