By Peter T. Leach for The Journal of Commerce Online - In a concession to financially pressed shipping lines, the Panama Canal Authority will cut back some tolls and fees while giving carriers greater flexibility in reserving movements through the canal. But the canal authority also left in place new toll increases going into effect May 1, rejecting calls to put off the increases. The new fee structure starting June 1 will temporarily reduce tolls on largely empty containerships and charges for transit reservations. The canal authority said the temporary measures are “designed to help mitigate the impact of the crisis on the Canal’s clients.” Because of the global economic recession and the resulting slump in trade, the major global shipping lines and shipping organizations have been urging the canal authority to delay the toll increases that went into effect May 1. But a reduction in tolls on ships in ballast and in reservation fees from June 1 to Sept. 30 of this year are the only concessions the authority was willing to make. (more)

By Peter T. Leach for The Journal of Commerce Online - CMA CGM profit dropped by almost 87 percent to $124 million in 2008 from $966 million a year earlier as freight rates plummeted on all of its major trade lanes. The French carrier, the world’s third-largest by capacity, reported a 28 percent increase in revenue, which hit $15.1 billion, compared to $11.8 billion the prior year. Volume increased by 15.6 percent to 8.9 million containers from 7.7 million in 2007. “We managed to remain profitable in 2008 although it was obviously not as successful as 2007, which was an exceptional year,” said Rodolphe Saade, chief executive vice president of the Marseilles-based container line, in a telephone interview. "2009 will be a more difficult year, but the company is taking every step to reduce costs, and we have a massive program in place to recuperate the lost revenue,” he said. (more)

By María De Gracia for the Panama America - The Panama Canal could see lower income when the final numbers are in at the end of the current fiscal year ending in September 2009 due to the current global recession as a product of the international economic crisis. The income of the Panama Canal could fall just 5% for the fiscal year said Alberto Alemán Zubieta yesterday, the Administrator of the Panama Canal, on the program "Debate Abierto" aired by TVN Channel 2. The Panama Canal took in more than $2 billion dollars in fiscal year 2008, so a drop of 5% would represent about a $100 million dollar loss of revenue. Zubieta said during the program although nobody will be able to escape of the present commercial contraction, it will not be something greatly effecting the canal. He explained the Panama Canal has seen many crises, for example the Great Depression and World War II, and historically speaking when there are economic contractions they are eventually followed by corrections and improvements in the market, and he says that's what will happen with this crisis is over. "It is not that the Panama Canal will not see a reduction in the tonnage, because this will happen, but also one has to consider there has been an increase in tolls," said Zubieta. Canal Expansion: The Panama Canal Authority opened public bidding this month for the dredging to the Atlantic approach to the Panama Canal as part of the expansion program. The contract contemplates the underwater dredging of about 15 million cubic meters of material and 800,000 cubic meters of dry excavation.

Peter T. Leach/The JOURNAL of COMMERCE ONLINE - The Panama Canal Authority is sticking to its scheduled May 1 toll increase in the face of plans by some of the world's largest container lines to route their vessels the long way around the Central American isthmus. "We have scheduled the toll increases that were agreed upon after a long period of consultation with the industry in 2006," Rodolfo Sabonge, the canal authority's director of corporate planning and marketing, said in an interview. "We make sure that everybody knows long ahead of time what we're doing. That has a lot of stability for the shipping industry and the shippers themselves." (more)

Rick Eyerdam - Florida Shipper - French carrier CMA CGM has decided to bypass the Panama Canal on the homebound leg of its PEX2 service linking Asia to the Caribbean in favor of a longer -- but less expensive -- route around Africa's Cape of Good Hope. “Even after we add a tenth vessel of 4,000 TEUs to the PEX2 service, we will save more than $200,000 by returning to Asia by traveling east around Africa,” said Laurent Falguiere, vice president, Caribbean and Latin American Lines at CMA CGM Group, in a telephone interview from the company's headquarters in Marseilles. Asked if he was sending a message to the Panama Canal Authority, which will raise tolls on May 1 by 14 percent -- the second increase in two years -- Falguiere said, “It is not to pressure the Panama Canal Authority. It is a very pragmatic position that we are taking. The primary reason was to look at the costs, and you cannot just ignore these savings.” (more)

By DON WINNER for Panama-Guide.com - Apparently the Panama Canal Authority held a press conference yesterday in which they presented the traffic totals for 2008. As a result, now practically every news organization in the world is reporting that traffic through the Panama Canal dropped 12.9% from 2007 to 2008. In fact, this is not correct. In 2007 14,721 ships passed through the Panama Canal, and in 2008 a total of 14,702 ships went through, or only 19 ships less than in 2007. That represents a relatively tiny drop of only 00.129%, or just over one tenth of one percent. You can see where the "12.9% drop" error came from. Someone at the ACP did the math but they just didn't understand where to place the decimal point. In fact, if there had been a drop of 12.9% compared to 2007 traffic, then there only would have been 12,821 ships passing through in 2008. Expect the ACP to issue some kind of a statement to correct this error today. And, you're welcome.

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

Panama City, Feb 9 (EFE).- U.S. economic woes have influenced estimates of the Panama Canal Authority, which now forecasts a 5-percent drop in cargo tonnage going through the waterway in 2008-2009. The authority, known as the ACP, said that cargo transiting the canal will show a decrease close to 19.9 million tons, leaving a total of 294.1 million. ACP Marketing Director Rodolfo Sabonge told the press that the forecasts are nonetheless subject to the way the United States and other countries stricken by the world financial crisis manage to reactivate their economies. The ACP said that ship traffic going through the canal was also affected by high fuel costs and the devaluation of the dollar. The canal closed the 2008 fiscal year, which ended Sept. 30, with a total of 14,702 crossings, or 12.9 percent less than the previous year (wrong - see comments). But toll revenues in 2008 totaled $1.32 billion, an increase of 11.3 percent over the previous year. (See Comments)

By Randy Boswell, Canwest News Service - The head of NATO has cautioned the alliance's Arctic nations -- including Canada and the U.S. -- to stay united despite the growing potential for conflicts among NATO members over energy resources and shipping rights in the increasingly open waters surrounding the North Pole. "Responding to the changing environment, several Arctic Rim countries are strengthening their capabilities, and military activity in the High North has been steadily increasing," NATO secretary general Jaap de Hoop Scheffer told alliance officials attending a meeting in Iceland about the rapidly shifting geopolitics of the Arctic. "Although the long-term implications of climate change and the retreating ice cap in the Arctic are still unclear, what is very clear is that the High North is going to require even more of the alliance's attention in the coming years." (more)

By SHANEY HUDSON - Sun-Herald - My first glimpse was from above. We flew down the continental divide, banking left to reveal the Caribbean Coast, before the plane turned right towards the sprawling metropolis of Panama City. Container ships dotted the bay like rectangular polka dots. And that thin, dark zigzag cutting the country in two, joining the Atlantic with the Pacific, was the Panama Canal. Not only did the canal revolutionise shipping, its construction was a drama of epic proportions involving countries, personalities, war and the death of about 25,000 workers. I'd assumed the only way to navigate the canal was either as cargo crew or by booking a passage on a luxury cruise. However, an affordable alternative is a four-hour partial transit on the Pacific Queen, a 35-metre cruiser custom-built for day trips with lunch, drinks and a guide on hand. (more)

Tampa Bay Business Journal - by Larry Halstead Staff writer - There were no Pollyanna words of encouragement for shipping in 2009 at an American Association of Port Authorities conference Thursday. Richard Wainio, Tampa port director, said 2009 is going to be “a very difficult year.” James Brennan, partner with Norbridge Inc., a Concord, Mass.-based management consulting firm for the transportation and logistics industries, echoed that assessment. Brennan spoke to more than 100 shipping industry executives, representing ports and vendors around the world, at the Grand Hyatt Hotel in Tampa. Even with potential bailout money, there would be a lag of perhaps 18 months before any shipping industry infrastructure projects could be completed and provide benefits for the economy. Manufacturing inventories have risen since 2002 and any economic recovery would have to be predicated on companies working off those excess inventories, Brennan said. Brennan predicted it would be the first half of 2011 before the economy returns to normal, although it should begin to turn around in 2010. (more)

NEW YORK (AP) -- Drybulk shipping stocks leaped Friday as the rates for the biggest drybulk vessels on the seas hit their highest point since October. Capesize vessel rates jumped 20 percent Friday, Dahlman Rose analyst Omar Notka said, as excess vessels supply continues to shrink, driving up prices for remaining vessels. The cost to charter a Capesize vessel has leaped nearly 50 percent in the last week, he said. Capesize vessels are so named because they are too big to fit through the Panama or Suez Canals and must instead navigate around the Cape of Good Hope or Cape Horn to travel between oceans. "Other sectors of the market are more muted, but Capesize momentum is carrying through to some extent," he said. Two out of three other vessel classes posted minimal gains on Friday. Also Friday, Lazard Capital Markets shipping and logistics analyst Urs Dur raised his price target on drybulk company Diana Shipping Inc. to $17 from $14 and reiterated his "Buy" rating, suggesting the company is low-risk compared with its peers. In afternoon trading, Diana Shipping rose 77 cents, or 5.5 percent, to $14.91. DryShips Inc. gained $1.94, or 12.8 percent, to $17.07 and Danaos Corp. added 75 cents, or 7.9 percent, to $10.21.

By Barry Turnbull, Liverpool Daily Post - Shipping lines and major ports like Liverpool are having to rethink their futures in the face of the credit crunch. The international shipping trade has been hit by the global economic slowdown that looks set to have a knock-on effect on the Port of Liverpool. Container traffic, in particular, is sharply down, which may have repercussions for Peel Ports’ plan for a £100m post-Panamax container terminal at Seaforth. Peel says it will take account of economic and financial conditions when it makes a final decision about the in-river engineering project in May. The company has obtained a Harbour Revision Order to enable the work to go ahead if the plan proves viable. Frank Robotham, Peel Ports marketing manager, said: “We are still doing detailed work on the engineering and costings, which won't be finished till next May. It is only then that we will look at the total costs and take a view on timescales. (more)

COLON, Panama, Dec. 31 (UPI) -- New nuclear threat detection technologies are currently operating in Panama after a recent agreement with the U.S. National Nuclear Security Administration. The United States and Panama recently reached an agreement that paved the way for the NNSA, in partnership with the Manzanillo International Terminal and others, to install advanced radiation detection systems at the Panama Canal's Atlantic and Pacific Ocean megaports, the NNSA reported. The ports, located at Colon and Panama City, are currently operating the scanning technologies to prevent the smuggling of illicit nuclear materials in cargo containers, as part of the Container Security Initiative. "We are working closely with the Panamanian National Customs Authority and with the private terminal operators in Panama to prevent nuclear terrorism and the proliferation of weapons of mass destruction," William Tobey, NNSA deputy administrator for defense nuclear non-proliferation, said in a statement. "The success of this project reflects a strong commitment and desire on behalf of the government of Panama to secure its ports from illicit trafficking in nuclear and other radioactive materials."

By DON WINNER for Panama-Guide.com - According to the Panama Canal Authority (ACP), beginning Sunday, December 14, 2008, at 2000 hours through Friday, December 19, 2008, at 0400 hours, the east sidewall culvert of Gatun Locks will be out of service for the rehabilitation of three (3) rising stem valves. Although both lanes will remain in service, they will be served by single culverts during filling and spilling operations. Therefore, all lockages at Gatun Locks will consume more time than normal. As a result, "Condition 1.a" will be in effect from December 15, 2008 through December 18, 2008. In layman's terms, there are some slight restrictions in effect for the next few days. The Panama Canal regularly runs at or near peak capacity, and any "clogging of the arteries" so to speak generally translates into more ships waiting in the anchorages, and more total "canal waters" time for ships passing through. More demand than supply - that's generally a good thing. The Panama Canal generates a huge amount of money for the country of Panama every year. Because of this asset and with the expanded canal due to come on line in 2014, eventually Panama will become the richest country in Latin America. Just wait and see...

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

iht.com PANAMA CITY, Panama: Panama said its canal is open to all, including a Russian warship sailing through the transoceanic waterway on Friday. The destroyer Admiral Chabanenko is the first Soviet or Russian military ship to traverse the 50-mile (80-kilometer) waterway since World War II. The U.S. government has shown little concern about the destroyer's trip through a canal that was off limits to the Soviet Union during the Cold War. The destroyer's journey to the Western Hemisphere, however, reflects Russia's growing influence and anger with the U.S. for using warships to deliver aid to Georgia after its August war with Russia. Panamanian Foreign Minister Samuel Lewis portrayed the Russian canal crossing as business as usual. (more)

PANAMA CITY, Panama, October 24, 2008 – The Panama Canal Authority (ACP) announced its operational metrics for the 2008 fiscal year (FY 08) today. Year-end (October 2007 – September 2008) statistics reveal a marginal decline in total transits and tonnage when compared to FY 07. However, the Canal also experienced growth in core segments, most notably tanker and passenger transits. Total Canal transits remained fairly constant, with a slight decline of 0.1 percent – from 14,721 to 14,702 transits. Booked transits (excluding auctioned slots) increased 3.9 percent – from 7,857 to 8,167 transits. Panama Canal/Universal Measurement System (PC/UMS) tonnage decreased 1.1 percent – from 312.9 million PC/UMS tons to 309.6 million PC/UMS tons. (more)

By Wilfredo Jordán Serrano for La Prensa - The Panama Canal Authority (ACP) took in just over $2 billion dollars during fiscal year 2008 which concluded on 30 September. ACP Administrator Alberto Alemán Zubieta said that for the first time the Panama Canal surpassed $2 billion dollars of total income. The increases in income are attributed to increases in tolls applied by the ACP, and income was up even though fiscal year closed with 19 fewer transits than 2007 due to the financial crisis in the United States. (See Comments)

Maritime Global Net - PANAMA CITY, Panama, September 22, 2008 – Every year, approximately five percent of the world’s trade transits the Panama Canal and by 2010, the waterway expects that it will celebrate its one-millionth transit. Through continued modernization efforts, the Panama Canal Authority (ACP) has improved its services and increased capacity including the replacement of 50,000 feet of tow track, the integration of more powerful locomotives and an increase in its tugboat fleet. The tow tracks enable locomotive units, or "mules" as they are called, to move alongside transiting vessels, affixed by wire cables, to maintain a ship's position during passage through Canal locks. Replacing the tracks, therefore, increases the efficiency of transits at the Canal. The waterway operates 24 hours a day, 365 days a year, and since 1914, more than 8 billion long tons have crossed the Canal with a total of more than 957,600 transits. With service to more than 144 transportation routes across the globe, the Panama Canal continues to provide safe, reliable and efficient passage for all vessels.

The JOURNAL of COMMERCE ONLINE - The Panama Canal Authority announced restricted transits Sept. 18-24 due to repairs to the west sidewall culvert of Miraflores Locks that began Tuesday. No more than eight "supers" may be booked for southbound transit and of these, no more than six with “full daylight-hour” restriction. Similarly, no more than seven supers may be booked for transit in the northbound direction, and of these, no more than five with “full daylight-hour” restriction. The total number of “full daylight-hour” restricted supers is limited to eight vessels per day. No more than four regular vessels may be booked for transit in the same direction. Of the six slots available for regular vessels, no more than two may be allocated to regular vessels transiting under restrictions.

By Eric Sabo and Karla Palomo Sept. 16 (Bloomberg) -- Panama Canal traffic probably won't grow this year for the first time since 2002 as the slowing U.S. economy damps demand for imports, the waterway's operator said. Freight shipped in 2008 will total 312 million tons, the same amount transported last year, Panama Canal Authority Chief Executive Officer Alberto Aleman said yesterday in a Bloomberg Television interview. ``We are going to end the year flat,'' Aleman said. Aleman's traffic projection reflects the U.S.'s status as the largest customer for the waterway, 9 years after handing over the canal authority to Panama. China is the canal's No. 2 user, the authority has said. (more)

By Trevor Williams for Global Atlanta.com - The Panama Canal Authority on Sept. 9 moved to renew its strategic partnership with the Georgia Ports Authority for three more years. The two entities first signed a memorandum of understanding in June 2003 to conduct joint marketing efforts and share data, expansion plans, training and technology. “This partnership is an important link for future growth, opening doors for new business opportunities and providing sustainable economic solutions for Panama and Georgia,” said Alberto Alemán Zubieta, the canal authority’s CEO. As Georgia’s trade with Asia increases, the relationship between the Panama Canal and the Port of Savannah has grown in importance. The canal provides the shortest transit for East Asian shippers to the U.S. East Coast. (more)

Maritime Global Net - PANAMA CITY, Panama, September 10, 2008 – For the first time ever, the Panama Canal Authority (ACP) received an investment grade rating from one of the world’s top credit rating agencies. Moody’s Investors Services today issued the ACP an A2 credit rating. This “A” rating classifies the ACP as “upper-medium grade and subject to low credit risk,” and reaffirms Panama’s growing presence in the global marketplace. “This announcement is a matter of national pride for Panama, because it is the result of the business model we use to manage the Canal to ensure its efficiency, safety and profitability,” said ACP Administrator/CEO Alberto Alemán Zubieta. “This also underscores the dynamic growth and development of Panama – its booming economy, combined with the ongoing historic Canal expansion project and the effective management of the Canal, all contributed to the high score the ACP received,” Mr. Alemán Zubieta added. Moody’s Investors Services is one of the leading independent companies in credit ranking and risk analysis. Its rankings are used by international investors to analyze the conditions of more than 100 countries, 12,000 companies and 29,000 public institutions.

Traffic World Online - Transits through the east lane of the Panama Canal will take longer than normal Aug. 19-27 due to repairs that will put the east sidewall culvert of Miraflores Locks out of service. The Panama Canal Authority said lockages will take longer than normal since the lane will receive single culvert during the filling and spilling operation, due to the repair of six and replacement of six rising stem valves. Condition 1.a of the waterway's Transit Reservation System will be in effect during that time. No more than eight supers may be booked for transit in the southbound direction, and of these, no more than six with "full daylight-hour" restriction. (more)

By Johanna M. Camargo for La Estrella - Now 94 years after it's opening, the Panama Canal continues to be the "goose that lays the golden eggs" for the national economy, and throughout international channels its efficiency is recognized at all levels. The Panama Canal has contributed more than $3.2 billion dollars to the Panamanian National Treasury since it was turned over to Panamanian control on 31 December 1999. This total almost duplicates the amount the United States gave to Panama during the entire 85 years the Panama Canal was under US control - over $1.8 billion dollars. Today, Panama is prepared for a new challenge, the construction of a new third set of locks, that would allow larger "post-panamax" ships to transit the Panama Canal.