JAPANESE SHIPOWNERS’ ASSOCIATION
Kaiun Building, 2-6-4, Hirakawa-cho
Chiyoda-ku,Tokyo 102-8603, Japan
Tel : +81-3-3264-7180
Fax : +81-3-5226-9166
E-mail: int@jsanet.or.jp

12 September 2019, Tokyo

JSA Comments on the Toll Structure Modification of the Panama CanalAs you know, the Panama Canal Authority (ACP) published their new toll structure to be
implemented in January, April and May 2020 on 6th September.
Takashi Nakashima, Vice President, the Japanese Shipowners’ Association (JSA) would like tocomment on the decision as follows:Firstly, with regard to the implementation date, the JSA appreciates that the ACP and Panamanian
Government have reconsidered the ACP’s original proposal that all toll modifications would beimplemented on 1st January 2020, on the same date when the much tighter IMO global SOx
regulation will be enforced, and they will postpone the implementation date for three months till
April 2020 as for most of the toll hikes, reflecting the international shipping industry’s concern; notonly by the JSA, but also by the ICS*1, the ASA*2 and the ECSA*3.

As a consequence, itmaterialises our request that any toll modification should be with sufficient (say, 12 months) priornotification. Especially in Japan, many annual contracts with shippers are revised in April and theJSA is grateful for the ACP’s final decision in this regard, which is in line with users’ needs.
With regard to the reduction of the proposed toll hikes for the vehicle carrier and Ro-Ro segment,
which the JSA representative (Mr Nakashima) specifically urged at the public hearing in July, we
positively appreciate the ACP’s consideration in this regard, although the reduction will only befrom a 15% hike to 12%.
On the other hand, as for the toll modification for the liquid bulk segment including oil tankers andLNG/LPG vessels, and a part of dry bulk vessels, we regret to learn that the toll rise by 5-15%
approximately will be made as originally proposed, by deliberation only from the point of view of theCanal’s competitiveness, when the shipping industry is still in a difficult financial situation. We
sincerely hope that the ACP will, in their future review, give a more thorough consideration to users’voices and situations so as to seek a ‘win-win’ relationship between the Canal users and the ACP.
-1-As a whole, throughout the modification process, we realise that the ACP has conferred a very
dedicated explanation to us concerning their deliberations, while all of our requests have not been
accepted. We recognise that the continuous dialogue to date between the JSA and the ACP has
cultivated the common ground to seek mutual understanding and enabled such a process. In themeantime, we are unable to deny the fact that there is some gap between the JSA and the ACP
concerning the tolls issue – for the ACP, the Canal is a Panamanian national asset and they ought
to maximise the toll revenue in order to contribute to the national treasury, while for the JSA, theCanal is an important international infrastructure which underpins global trade, and the long-term
stability of the tolls should be paramount.
The JSA and the ACP have held at least one dialogue every year in the past decade, and sinceNovember 2017 these dialogues has been formally established as regular dialogues, with theattendance of Japanese government representatives (from the Ministry of Infrastructure, Transport,and Tourism (MLIT)). The JSA firmly confirms that we will enhance mutual understanding andtrust through the regular dialogues on wider issues such as the toll system, the streamlining of theCanal management and vessel transit, and operational safety.

Our next dialogue meeting isscheduled to be held in Tokyo in November this year.
At the next dialogue, the JSA intends to request of the ACP that they would secure a longer
consultation period, which is, we understand, currently one month in accordance with local
regulations, in order to enable us to fully prepare submissions and to coordinate with ourcustomers and other trade associations.
Lastly, we would like to take this opportunity to express our sincere appreciation for all those whohave extended their great assistance to establish such a good relationship between the JSA andthe ACP, namely, the Japanese Government including the MLIT, the Japanese Embassy inPanama, the Panamanian Embassy in Tokyo, and we would like to call for their continued supportin the future.
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ICS (International Chamber of Shipping)
Headquartered in London, formed of 36 members from worldwide shipowners' associations.
https://www.ics-shipping.org/about-ics/about-ics
ASA (Asian Shipowners’ Association):
Headquartered in Singapore, formed of 8 members from shipowners’ associations from Asia.
http://asianshipowners.org/about.php
ECSA (European Community Shipowners’ Association):
Headquartered in Brussels, formed of 20 members from shipowners’ associations from the EU andNorway.
https://www.ecsa.eu/about-us

The Japanese Shipowners’ Association (JSA) is a nationwide maritime organisation consisting of
126 Japanese shipping companies headquartered in Tokyo.
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