The Panama Canal Authority announced yesterday (LINK) that they intended to keep in place rate hikes which are scheduled to go into effect on May 1, 2009.  They also announced that they were implementing some temporary cost savings measures, effective June 1, 2009, to help shippers during these uncertain times.  The two primary components of their cost savings efforts are the redefinition of ballast for full container vessels transiting the canal and modifications to their reservations program to increase flexibility and reduce fees.  

While helpful, the early indications are that shippers are continuing to pursue other alternatives to both the Panama and Suez canals.  We’ll have to wait and see whether these cost savings offset the higher fees and whether shippers continue to structure routes to avoid any fees at all.