Price war at sea

Shipping companies are seeing a decrease in the volume of maritime cargo and their earnings, and have begun to pressure the Panama Canal concerning the toll.

Thursday, February 5, 2009

The Panama Canal Authority has set a price increase schedule for the Canal toll for 2009 and 2010, and the large shipping companies, which are experiencing a decrease in earnings due to the drop in maritime trade, are looking for ports where they can operate a lower cost. Ports on the eastern United States could be an option for ships coming from Asia and eventually more profitable than going through the Panama Canal.

Marco Gandasegui reports in an article on that "According to Lloyd's List, shipping companies are pressuring the ACP to cancel or postpone the toll increase programed from 2009. The decrease in maritime trading is threatening to bankrupt several companies. The Suez Canal, according to the report, is in an even more difficult situation because many companies have changed their routes, to avoid the Egyptian waterway."

More on this topic

Lower prices due to Airlines Competition

July 2014

The arrival of new competitors with frequencies between Colombia and Central America has generated a reduction in rates, favoring customers.

The opening of routes from Medellin and Bogota to Panama, by the airlines AirPanama and VivaColombia with fares "... up to 70% less than those offered by the subsidiary of Copa Holdings" is already generating benefits to travelers.

Market Opening Led to Lower Insurance Rates

July 2013

After two years of full competition in Costa Rica, insurers are keeping in place aggressive pricing tactics and incentives in the battle for customers.

In an interview conducted by Sergio Morales for, William Constenla, president of the National Insurance Institute (INS by its initials in Spanish), explained that the company has been forced to confront the price war by offering more services or range of products, offering, for example, zero deductible car insurance, which means that the insured party does not have to pay anything in case of an accident.

Shipping Companies Call for Delay in Toll Hike

May 2012

ICS member companies fear a further negative impact from the effects of the global economic crisis, if Panama applies a toll hike from July 1.

The International Chamber of Shipping companies (ICS), the largest international shipping association, has asked the Panama Canal Authority (ACP in Spanish) to postpone the increase in tolls of 15%, whose first phase has been announced for 1 July.

The Maritime Industry Impacted by the Crisis

February 2009

Compared to the 2007 record of 8 billion tons in transports, global maritime commerce fell substantially in 2008, dragged down by the crisis.

A good indication of this is the decrease in the Baltic Dry Index, which is composed of the prices of the maritime transportation of dry cargo.