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Following CMA CGM, MSC also announced a canal surcharge

2023-11-28 10:00:29

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MSC has announced that it will impose a hefty surcharge of $297 /TEU on cargo passing through the Panama Canal in response to the canal's dwindling capacity. Last Tuesday, CMA CGM became the first shipping company to announce a "Panama Canal Fee Adjustment Factor" of $150 /TEU, effective January 1, 2024. The MSC surcharge, which is almost double that of French shipping lines, will come into effect on December 15.

MSC informed customers: "In the second quarter of 2023, the Panama Canal Authority decided to reduce the draft depth from 14.94 meters to 13.41 meters. Despite several water conservation measures in the past few months, the lack of precipitation in the region is affecting water levels in the canal. As a result, the Canal Authority has recently confirmed further restrictions on the number of ships that can navigate the canal. These restrictions, combined with the increase in canal fees implemented earlier this year, have had a direct impact on MSC's overall operating costs."


 

An analysis by shipping media previously indicated that the number of daily trips is expected to be reduced to 18 from February, and the daily capacity of Neopanamax vessels passing through the canal locks could be less than 50 percent of the designed capacity.

 

And, with the weather showing no signs of improving, Maersk has previously warned shippers that while its advanced plans are enough to mitigate potential delays, they should be prepared for other issues. The company informed customers: "Maersk is working closely with PCA to secure the necessary shipping slots. Transit is arranged 30 to 14 days prior to arrival, depending on the size and heading of the passing vessel, with the aim of safeguarding the transit schedule of vessels." Maersk also noted that it has acquired the blocktrain service between Balboa and Cristobal, which "provides alternative container transport options", but stressed that these options are "limited".


 


Public protests across the country over Canada's First Quantum mining company's plans to expand its Cobra Panama copper mine into virgin rainforest have exacerbated the transportation problems. The protests drew as many as 250,000 Panamanians and local environmentalists onto the streets, causing major blockades including the road leading to the container terminal. Some local environmentalists have also claimed that water used by First Quantum in the copper mining process has caused low water levels in the canal, although the company has denied this.

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