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The latest news and developments from Panama, one of the world’s most important shipping nations.

Panama Canal adjusts freshwater charge

The Panama Canal has announced that it will modify the variable component of the Fresh Water Charge (FWC) which will take effect on 1st October.

Michele Labrut, Americas Correspondent

September 26, 2023

1 Min Read
Panama Canal Fresh Water (1)
Photo: ACP

As part of the Canal's efforts to manage the maximum draught available for transit through the Canal, The Panama Canal will modify the variable component of the Fresh Water Charge (FWC) with the objective of reserving water and improving lake levels impacted by the lack of rainfall.

With this adjustment to the FWC, and given the current level of Gatun Lake, Panama Canal customers will see a reduction of approximately 50 % in the variable rate compared to the current formula, the Panama Canal Authority (ACP) said in a statement.

The average reduction for a Neopanamax vessel will be B/.19,700 per transit, and for a Panamax vessel B/.6,800 per transit.

The FWC is applicable to all vessels over 38.1m (125 ft) in length transiting the Canal.

Changes in rainfall patterns that have affected the availability of water in the Panama Canal's lake system, prompted the Canal to adopt measures to optimise its use, including FWC, starting in 2020. 

The Panama Canal incorporated the value of water into the Other Maritime Services (OSM) line item through a freshwater charge that depends on the availability of the water resource at the time of transit. 

About the Author

Michele Labrut

Americas Correspondent

Michèle Labrut is a long-time Panama resident, a journalist and correspondent, and has continuously covered the maritime sector of Central & Latin America.

Michèle first came to Panama as a press attaché to the French Embassy and then returned to the isthmus as a foreign correspondent in the 1980s.

Author of Seatrade Maritime's annual Panama Maritime Review magazine and of several books, Michèle also wrote for Time magazine, The Miami Herald, NBC News and the Economist Intelligence Unit. She has also collaborated in making several documentaries for the BBC and European and U.S. television networks.

Michèle's profession necessitates a profound knowledge of the country, but her acumen is not from necessity alone, but a genuine passion for Panama.

In 2012 she was awarded the Order of Merit (Knight grade) by the French Government for her services to international journalism and in 2021 the upgrade to Chevalier grade.

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