The Panama Canal Authority (PCA) announced that it is considering a proposal to restructure its pricing system.

"As the world becomes more interconnected-barriers dropping, tariffs reduced-the significance of the Panama Canal and its function in the global supply chain become more important. Shippers moving goods from the U.S. Gulf Coast to Asia can save up to 10 voyage days via the Panama Canal, and vessels traveling from the West Coast of South America to the U.S. East Coast shave an estimated eight to 16 voyage days compared to alternative routes," the PCA said in a release. "Given the cost increases in shipbuilding, fuel and vessel operations, the route through the Panama Canal has significantly increased its value to its users."

According to Logistics Management, in a key element of the plan, the PCA is proposing a change to vessel charges that are based on displacement-to simplify and streamline the process. The PCA proposes that the charge will be based upon the maximum displacement draft instead of the arrival draft to assess tolls according to the specified tonnage rate.

Formal consultation on the proposal will continue until March 12, 2007. The PCA will consider input, suggestions and feedback from interested parties until that date.