From: MJCoulson [mailto:
Sent: 02 June 2008 17:07
To: Gunnar Knudsen
Subject: FROM THE ACP - response to INTERTANKO note of May 20 - Continued concerns over transit delays in the Panama Canal
Importance: High

Dear Mr. Knudsen:

Below is Mr. Alberto Alemán´s response to your note of May 20.

Sincerely

May Jane Coulson

Manager, Inter-institutional and

Administrative Coordination

Office of the Administrator

Panama Canal Authority
Tel. (507) 272-1405 Fax(507) 272-1409

Dear Mr. Knudsen:

The backlog that we have experienced at the Panama Canal has been gradually decreasing over the last couple of weeks, from a high of 106 vessels in May 2008 to a low of approximately 41 as of May 31. The waiting time to transit has also decreased, from seven days, experienced during the first half of May 2008, to less than a day today.

Since the backlog situation began, approximately three months ago, the ACP has taken several measures aimed at bringing this number to acceptable levels as quickly as possible, and in the process has modified several operational procedures, to include changes to the booking system. However, the “multiple swaps” flexibility announced last month (Advisory to Shipping A-11-2008) was not aimed to reduce the backlog; it was designed to provide our customers with greater flexibility when using the booking system. Therefore, we believe that modification is serving its purpose.

In summary, we are aware of the seriousness of the situation and the negative impact it has had on our customers. Nevertheless, the ACP expresses its unvarying commitment to continue directing all efforts to bringing the backlog to normal levels, and provide our customers with safe and expeditious transits.

Regards,

Alberto Alemán Zubieta

CEO/Administrator

Panama Canal Authority

From: Gunnar Knudsen [mailto:
Sent: Tuesday, May 20, 2008 3:01 AM
To: AAleman
Subject: Continued concerns over transit delays in the Panama Canal

Alberto Alemán Zubieta
Administrator
Panama Canal Authority

Dear Sir,

Reference is made to recent correspondence in which INTERTANKO, on behalf of its members, has expressed concerns over the operational and commercial effects from delays in transiting the Panama Canal.

It has been noted that some improvement in transit delays had been gradually achieved but the backlog again appears to have worsened to some extent.

INTERTANKO members express concern at the continued backlog and that the recently announced flexibility in switching ships seems to have had limited beneficial effect. In the daily reports received it is quite evident that ship operators continue to feel the dire concequences from the backlog and are prepared to pay up to USD 250/300,000 for the auctioned extra daily booking slot.

INTERTANKO feels confident that ACP continues to make every effort to deal with the current situation with the aim to reduce waiting time to a minimum by ensuring the maximum efficiency of all applicable transit services.

It would, therefore, be interesting and useful for our members to receive ACP's comments on the current situation and whether lasting improvements can be expected in the near future.

With our thanks.

Kind regards

Gunnar A. Knudsen

Manager, Ports and Terminals
Regional Manager for Germany and Norway
INTERTANKO
P.O.Box 761 Sentrum, 0106 Oslo, Norway
Direct: +47 2212 2658
Exchange: +47 2212 2640
Fax: +47 2212 2641
Mobile: +47 920 57 244
Email:
Website:
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