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Panama Canal to implement new long-term quota allocation in October, except for LNG and LPG

The Panama Canal's new methodology will come into effect in October 2024, with the main objectives of establishing more flexible and sustainable regulations.

Joshua Falcón.

Published: August 28, 2024

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The Panama Canal Authority has announced that the new “Long Term Quota Allocation”(LoTSA) methodology will come into effect on October 1, 2024 for most market segments, excluding Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).

The Panama Canal and the postponement for container ships

This official communication was made through Notice to Shipping Lines No. A-30-2024, which details the upcoming changes to the Transit Booking System for Neopanamax vessels. A-30-2024, which details the upcoming changes in the Transit Booking System for Neopanamax vessels. In this way, customers of the segments, obtain updated information on the adjustments of the Panamanian Canal.

The introduction of the LoTSA methodology has caused most of the customers of the container vessel segment to “request more time to properly evaluate this new initiative”. On the other hand, the Panama Canal Authority has decided to postpone the implementation for these segments, allowing greater participation and ensuring the success of this new mechanism.

The Quota Allocation Method is designed to increase the safety and flexibility of transit through the Panama Canal. transit through the Panama CanalThe new method offers customers the possibility of obtaining different “transit slots, reservations or quotas” in a single transaction. This change seeks to optimize transit through the interoceanic waterway, providing greater stability to customers and adjusting to market needs.

The sealed bidding process for the first period of the calendar year, which is comprised for the reserve dates between January 5, 2025 and January 3, 2026, will be carried out as established in the corresponding table below:

Panama Canal Closed Bidding Process Table

Table 1. The official allocations of the sealed bidding process.

The Panama Canal Authority has reaffirmed that the current customer rating mechanism will remain unchanged until at least December 31, 2025, as previously indicated in the Notice to Shipping No. A-29-2024 A-29-2024 . Los segmentos de GNL y GLP mantendrán la fecha de implementación previamente anunciada en el Notice to Shipping Lines No. A-25-2024 A-25-2024 The stipulated schedule will continue as scheduled with no changes.

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Source and photo: Panama Canal