Article

The Panama Canal Extends Temporary Relief Measures for Customers to End of 2020


published on 28 August 2020 53

Photo and press release by Panama Canal Authority

As the COVID-19 pandemic continues to impact the global economy, the Panama Canal will extend its temporary relief measures to December 31, 2020, offering further support for the industry's recovery.

This extension comes after continued dialogue between the Canal and industry leaders on how to best provide relief as the world looks to recover from the economic and social impact of COVID-19.

"Despite the challenges faced earlier this year, I am confident we will see a steady recovery going into our 2021 Fiscal Year for both the Canal and its customers," said Panama Canal Administrator Ricaurte Vásquez Morales. The waterway's fiscal year will end on September 30, 2020.

Implemented on May 4 and originally set to run until September 1, the relief measures include the suspension of advance payments for transit reservation fees and other changes to the waterway's reservation system. Together, they allow customers to maintain higher liquidity, as well as added flexibility for swapping or substituting booking slots among their own fleets.

"I am encouraged by the growth we are seeing for the container segment, though we are tracking changes in global trade flows vigilantly," said Deputy Administrator Ilya Espino de Marotta. "The extension of these measures underscores our commitment first and foremost to our customers."

Transits at the Panama Canal climbed from 845 in June to 933 in July, and August is showing a similar trend. The increase was largely driven by a surge in containership transits along the U.S. East Coast to Asia route.

The extension of the relief measures comes on the heels of the Canal's commitment to make the investments in order to secure a sustainable, long-term solution to water levels, furthering the waterway's operational reliability in the years to come.
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