Panama Canal to reduce water charges starting in October

The Panama Canal Authority said on Monday (09/25) a surcharge for water use it had applied to conserve water during a prolonged drought will be reduced starting October.

The waterway has imposed a series of restrictions this year, including the maximum number of vessels allowed to pass per day and the ships’ authorized draft, in a move to conserve water as the drought is forecast to extend into 2024. The water surcharge was first imposed in 2020.

Following the adjustment, the canal’s customers will see a reduction of about 50% in the variable component of a tariff for fresh water use, compared with the current tariff, the canal’s administrator said in a release.

The waterway’s administrator is applying measures to remain competitive even with the adverse environment conditions, it said.

(Reporting by Elida Moreno, Editing by Marianna Parraga and Bill Berkrot)

Source: Nasdaq

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