PANAMA CANAL OVERVIEWCOMPUTING TRANSIT FEES - TERMS

DISPLACEMENT: Mass of water displaced by the ship. Always less than the mass of the ship. It represents the volume of the ship below the waterline.

PC/UMS Panama Canal / Universal Measuring System. Defined by UN convention in 1969. Equates to the volume of the hull. 100 cu ft = 1 ton. Meant to represent cargo capacity. Does not include superstructure or deck cargo.

PC/UMS for cruise ships includes volume of the superstructure above the hull.

PANAMA CANAL OVERVIEWCOMPUTING TRANSIT TOLLS: TERMS

TEU: Twenty foot Equivalent Unit. Standard measurement for containerized cargo. (size of small shipping containers. Standard shipping containers are 40’ = 2 TEU.)

LADEN: Any cargo ship carrying cargo for hire in any amount. Any cruise ship carrying paying passengers in any number.

BALLAST: Any commercial ship (Cargo or Cruise) not transporting for hire.

PANAMA CANAL OVERVIEWTRANSIT TOLLS (Before 2000)

TWO FEE SCHEDULES:

Commercial shipping paid based upon cargo (or passenger) carrying capacity prior to 1970 and PC/UMS from 1970. There were two rates with Laden vessels paying more than vessels In Ballast. Non-commercial ships such as private vessels and warships paid based upon their displacement.

Laden Ballast Displacement (Fee per ton)1914 $0.90 N/A1977 $1.22 $0.97

1989 $2.01 $1.60 $1.12 1999 $2.57 $2.04 $1.47

Record fees have been held by cruise ships for over fifty years. In 1992, the cruise ship Regal Princess set the then record at $186,000.

PANAMA CANAL OVERVIEWTRANSIT TOLLS: BEFORE 2000

PANAMA CANAL OVERVIEWTRANSIT TOLLS 2000 - 2005

Through 2002, the fee structure remained unchanged. In October 2002, the new Panama Canal Authority adopted a new toll schedule after study and consultation with industry. While it kept the PC/UMS measurements and distinction between Laden and Ballast, it now had many rates. It broke the rates into categories by cargo type:

General CargoRefrigerated CargoDry BulkTankersVehicle CarriersPassenger shipsOther

PANAMA CANAL OVERVIEWTRANSIT TOLLS: 2005-Present

2005: Container Ships charged by the TEU and not by PC/UMS tonnage rates. Other ships with on deck containers charged by the TEU for deck cargo where they had not been charged before.

2007: PC/UMS tolls adopted three rates. Highest rate for first 10,000 tons, a second rate for the second 10,000 tons and the lowest rate for every ton over 20,000.

Cruise ships now charged either based upon PC/UMS or by the number of passenger cabins based upon passenger “density.”

2011: Cargo categories changed to reflect industry usages. Refrigerated Stores removed and Chemical Tankers and LPG Tankers added as categories.

PANAMA CANAL OVERVIEWTRANSIT TOLLS

PANAMA CANAL OVERVIEWTRANSIT TOLLS: Application PC/UMS Calculation

Celebrity Infinity

Displacement 91,000 PM/UMS 90228Passengers 2170Cabins 1085Ratio 41.58

PM/UMS Calculation

1st 10K $44,2002nd 10K $43,30070,228 $299,171

Total $386,671

PANAMA CANAL OVERVIEWTRANSIT TOLLS: APPLICATION

Holland America Statendam

Displacement 55,451PC/UMS 26945*Passengers 1258Cabins 629Ratio 21.41

Per Berth Calculation:

1258 x $134=$168,572

* Not an official source.

PANAMA CANAL OVERVIEWSMALL VESSELS (<1,000 Tons Displacement)

PANAMA CANAL OVERVIEW

PANAMA CANAL OVERVIEWFREQUENTLY ASKED QUESTIONS

AND MISCONCEPTIONS:3. Cruise ships have priority over all other shipping.

PANAMA CANAL OVERVIEWAll cruise ships have to pay a large, additional fee at least one year ahead of schedule to obtain a priority or time certain transit.

PANAMA CANAL OVERVIEWOnly warships have unrestricted priority of transit. This applies to warships from any country and has been part of every canal treaty.

A CANAL TRANSITTHE PACIFIC ENTRANCE

A CANAL TRANSITTHE PACIFIC ENTRANCE

A CANAL TRANSITPilot boats approaching the ship at dawn. The transfer occurs before the ship enters the channel.

Panama Canal OverviewCanal Pilots

Certification required for all who are allowed to navigate Panama Canal.

All ships (including Navy) must relinquish command to Canal Pilot to transit.

Certification as either North or South Transit.

Exception: Tugs. Certain small vessels that routinely travel the canal such as patrol craft of former Special Boat Unit 26.

Panama Canal OverviewCanal Pilots

Highest compensated employees of Canal.

Certification by:

Panama Canal Company 1914-1979Panama Canal Commission 1979-1999Panama Canal Authority 2000-Present

Pilot in command from Limon Bay entranceto Bay of Panama.

Certifications:

<1,000 tons displacement<10,0000 tons displacement<Panamax dimensions (but no tonnage)All ships, all tonnage except:

Panama Canal OverviewCanal Pilots

Highest pilot certification is for vessels deemed as Ultra-hazardous.

Pilot must have otherwise unlimited certification: All ships including Panamax.

Ultra Hazardous are vessels whosecargo or nature create possibility of extreme risk. These include:

Liquid Natural Gas (LNG) carriers.

Nuclear powered ships.

PANAMA CANAL OVERVIEWThe number of pilots depends upon the ship’s size and visibility from the bridge. Most ships require two pilots. This one probably had four.

A CANAL TRANSIT

Despite the turnover, theCanal still uses U.S standards. This buoy marking the right side of the entrance to the Pacific channel would be yellow in most parts of the world, but is red in the U.S.

Likewise, while Panama uses the metric system of measurements, the Canal still uses the U.S. system.