The Canals Sub-Committee reports to the Shipping Policy Committee (SPC). It sets and oversees the global shipping industry’s agenda and official positions on matters related to major international shipping canals, which have a significant impact on international shipping trade.

The Canals Sub-Committee maintains high level contacts with relevant shipping Canal authorities, to ensure proper industry representation and consultation on any Canal developments that affect commercial, trade or operational aspects of international shipping.

This includes providing official, consensus based responses (on behalf of the global shipping industry) to relevant public consultations conducted by national canal authorities.

Background

Connections

Aims and Objectives

Current Issues

The Panama Canal and the Suez Canal are important national assets for their native lands, but beyond their borders, they remain strategic waterways connecting oceans for sustainable developments of the global economy. I am therefore of the view that both authorities are responsible for providing safe, smooth and stable services over the long term.

Accountability, transparency, stability, and foreseeability should be paramount factors in the management of those canals, and the abrupt toll changes, which have been occurring irregularly, would cause intolerable disruptions to the shipping industry.

I am confident ICS will help craft a brighter future for the world’s economic landscape through continuous constructive dialogue between the industry and the canal authorities.

Mr. Keiji Tsuchiya,  Chair Canals Panel and Vice President, JSA

 

Background

Providing shorter maritime trade routes between countries and faster connection between oceans, the major shipping canals are among the most important waterways in the world and are of vital importance to world trade, noting that the global shipping industry, as represented by ICS, transports around 90% of world trade.

The Sub-Committee provides a consultative platform through which members of ICS discuss a range of canal related issues and their impact on trade in particular. It also serves to strengthen the voice of ICS (in particular) and the global shipping industry (in general), on shipping canal issues with those national canal authorities that have an impact on the international shipping industry.

Connections

Reporting to the ICS Shipping Policy Committee (SPC), the Canals Sub-Committee establishes a framework that serves as a basis for the global shipping industry’s position on shipping canal related issues. This includes liaising and fostering relationships with leading national canal authorities, such as the Panama Canal Authority (ACP) and the Suez Canal Authority (SCA).

Aims and Objectives

The Canals Sub-Committee functions in accordance with the bullet points outlined below. With respect to what ICS members are responsible for, the majority of the work conducted within the framework of the Sub-Committee (ICS Secretariat and members) is undertaken on a cooperative basis, with members providing inputs (via email and phone calls) to the ICS Secretariat, to address specific canal related issues. Based on all the inputs received on any given issue, a common ICS position is established and communicated to the relevant authorities. All Sub-Committee members contribute as much as possible, with collection of information, agreeing on the way forward, etc.

The aims and objectives of the Canals Sub-Committee are as follows:

• Fostering a strong long-term relationship between ICS and the national canal authorities.
• Share information about the policies of national canal authorities that have an impact on national shipping industries.
• Liaise closely with national canal authorities to communicate the consensus position of the global shipping industry.
• Co-operate, whenever appropriate, with other international shipping organisations including regional partners, ECSA and ASA.
• Support development of effective and considered national shipping canal policies.
• Ensure that the interests of shipping are properly addressed in policy areas related to shipping canals.
• Address any other canal related issues that may have trade or commercial implications for international shipping.
• Dissemination of relevant information to ICS members with respect to Suez Canal Authority (SCA) Circulars and Panama Canal Authority (ACP) Advisories to shipping

Current Issues

The various tolls and other charges paid by ships crossing these canals, represent a significant source of income for both national canal authorities, as custodians of the canals, and their national economies. The vast majority of interaction between ICS and shipping canal authorities is primarily related to these tolls and charges.

• Modifications to Panama Canal and Suez Canal toll charges.
• Implementation of Modifications to Panama Canal Conservation Strategies, by the Panama Canal Authority (ACP). This strategy has introduced new fee and operational changes (separate from standard toll charges) to address historic low water levels at the Canal’s main water source (Gatun Lake). Its impact on trade and the ability of ships to cross the canal has been significant since the implementation of new charges in February 2020.
• Stocktaking meetings between ICS and the Panama Canal Authority (ACP) as well as the Suez Canal Authority (SCA).