Enhancing Transit Certainty and Flexibility
The Panama Canal has unveiled a significant update to its Transit Booking System with the introduction of the Long-Term Slot Allocation (LoTSA) method, specifically designed for Neopanamax vessels. This strategic enhancement, announced through an Advisory to Shipping, aims to provide increased transit certainty and flexibility for clients navigating this critical global trade route.
A Shift Towards Long-Term Planning
Traditionally, slot offerings in the Transit Booking System have been managed on a daily basis, with an anticipation period preceding the desired transit date. However, the newly introduced LoTSA method marks a paradigm shift by allowing clients to secure multiple transit bookings in a single transaction well in advance. This forward-looking approach offers unprecedented planning capabilities and streamlines the booking process for frequent users of the canal.
Tailored Slot Packages for Diverse Market Segments
Under the LoTSA method, multiple slot packages for transits scheduled in January of the upcoming year will be made available to various market segments. These packages, which can be booked for either northbound or southbound transits, will offer clients the opportunity to acquire a series of slots with a set frequency—whether weekly or monthly—throughout the year.
Competitive Auction Process
The Panama Canal will allocate these slots through a competitive auction. Clients can submit sealed bids, with a starting base bid set at $200,000.00 USD per slot. The auction process ensures that slots are awarded to the highest bidder, reflecting the maximum amount a customer is willing to pay for each slot within the package.
Flexible Booking Periods
The LoTSA method complements the existing booking periods, which include:
Period 1: Bookings 90 days prior to transit.
Period 1A: Bookings made between 30 to 15 days before transit.
Period 2: Bookings 14 to 8 days before transit.
Period 3: Bookings made 7 to 2 days prior to transit.
The introduction of LoTSA adds an additional layer of flexibility, with various slot packages available for auction, catering to different client needs.
Key Dates to Remember
The first auctions under the LoTSA method will commence on September 2, 2024, allowing clients to secure bookings for transit dates spanning from January 5, 2025, through January 3, 2026. These auctions will provide clients with the opportunity to plan their transit schedules well in advance, ensuring smoother operations and greater efficiency.
For further details or inquiries about the newly introduced Long-Term Slot Allocation (LoTSA) method, or if you require assistance with your transit bookings, please don’t hesitate to reach out to us at asa@shipsagent.com. Our team is ready to provide you with the support and information you need to take full advantage of this new offering.
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