1. COMPUTING TRANSIT FEES - TERMS DISPLACEMENT: Mass of water displaced by the ship. Always less than the mass of the ship. It represents the volume of the ship below the waterline. PC/UMS Panama Canal / Universal Measuring System. Defined by UN convention in 1969. Equates to the volume of the hull. 100 cu ft = 1 ton. Meant to represent cargo capacity. Does not include superstructure or deck cargo. PC/UMS for cruise ships includes volume of the superstructure above the hull.

2. PANAMA CANAL OVERVIEW COMPUTING TRANSIT TOLLS: TERMS TEU: Twenty foot Equivalent Unit. Standard measurement for containerized cargo. (size of small shipping containers. Standard shipping containers are 40’ = 2 TEU.) LADEN: Any cargo ship carrying cargo for hire in any amount. Any cruise ship carrying paying passengers in any number. BALLAST: Any commercial ship (Cargo or Cruise) not transporting for hire.

3. TRANSIT TOLLS (Before 2000) TWO FEE SCHEDULES: Commercial shipping paid based upon cargo (or passenger) carrying capacity prior to 1970 and PC/UMS from 1970. There were two rates with Laden vessels paying more than vessels In Ballast. Non- commercial ships such as private vessels and warships paid based upon their displacement. LadenBallast Displacement(Fee per ton) 1914$0.90N/A 1977$1.22$0.97 1989$2.01$1.60$1.12 1999$2.57$2.04$1.47 Record fees have been held by cruise ships for over fifty years. In 1992, the cruise ship Regal Princess set the then record at $186,000.

4. PANAMA CANAL OVERVIEW TRANSIT TOLLS: BEFORE 2000

5. TRANSIT TOLLS 2000 - 2005 Through 2002, the fee structure remained unchanged. In October 2002, the new Panama Canal Authority adopted a new toll schedule after study and consultation with industry. While it kept the PC/UMS measurements and distinction between Laden and Ballast, it now had many rates. It broke the rates into categories by cargo type: General Cargo Refrigerated Cargo Dry Bulk Tankers Vehicle Carriers Passenger ships Other

6. PANAMA CANAL OVERVIEW TRANSIT TOLLS: 2005-Present 2005:Container Ships charged by the TEU and not by PC/UMS tonnage rates. Other ships with on deck containers charged by the TEU for deck cargo where they had not been charged before. 2007:PC/UMS tolls adopted three rates. Highest rate for first 10,000 tons, a second rate for the second 10,000 tons and the lowest rate for every ton over 20,000. Cruise ships now charged either based upon PC/UMS or by the number of passenger cabins based upon passenger “density.” 2011:Cargo categories changed to reflect industry usages. Refrigerated Stores removed and Chemical Tankers and LPG Tankers added as categories.

7. TRANSIT TOLLS

8. PANAMA CANAL OVERVIEW TRANSIT TOLLS: Application PC/UMS Calculation Celebrity Infinity Displacement 91,000 PM/UMS90228 Passengers2170 Cabins1085 Ratio41.58 PM/UMS Calculation 1 st 10K $44,200 2 nd 10K $43,300 70,228$299,171 Total$386,671

9. TRANSIT TOLLS: APPLICATION Holland America Statendam Displacement55,451 PC/UMS26945* Passengers1258 Cabins629 Ratio21.41 Per Berth Calculation: 1258 x $134=$168,572 * Not an official source.

10. PANAMA CANAL OVERVIEW SMALL VESSELS (<1,000 Tons Displacement)

11. PANAMA CANAL OVERVIEW

12. FREQUENTLY ASKED QUESTIONS AND MISCONCEPTIONS: 3.Cruise ships have priority over all other shipping.

13. PANAMA CANAL OVERVIEW All cruise ships have to pay a large, additional fee at least one year ahead of schedule to obtain a priority or time certain transit.

14. PANAMA CANAL OVERVIEW Only warships have unrestricted priority of transit. This applies to warships from any country and has been part of every canal treaty.

15. A CANAL TRANSIT THE PACIFIC ENTRANCE

16. A CANAL TRANSIT THE PACIFIC ENTRANCE

17. A CANAL TRANSIT Pilot boats approaching the ship at dawn. The transfer occurs before the ship enters the channel.

18. Panama Canal Overview Canal Pilots Certification required for all who are allowed to navigate Panama Canal. All ships (including Navy) must relinquish command to Canal Pilot to transit. Certification as either North or South Transit. Exception: Tugs. Certain small vessels that routinely travel the canal such as patrol craft of former Special Boat Unit 26.

19. Canal Pilots Highest compensated employees of Canal. Certification by: Panama Canal Company 1914-1979 Panama Canal Commission 1979-1999 Panama Canal Authority 2000-Present Pilot in command from Limon Bay entrance to Bay of Panama. Certifications: <1,000 tons displacement <10,0000 tons displacement <Panamax dimensions (but no tonnage) All ships, all tonnage except:

20. Panama Canal Overview Canal Pilots Highest pilot certification is for vessels deemed as Ultra- hazardous. Pilot must have otherwise unlimited certification: All ships including Panamax. Ultra Hazardous are vessels whose cargo or nature create possibility of extreme risk. These include: Liquid Natural Gas (LNG) carriers. Nuclear powered ships.

21. PANAMA CANAL OVERVIEW The number of pilots depends upon the ship’s size and visibility from the bridge. Most ships require two pilots. This one probably had four.

22. A CANAL TRANSIT Despite the turnover, the Canal still uses U.S standards. This buoy marking the right side of the entrance to the Pacific channel would be yellow in most parts of the world, but is red in the U.S. Likewise, while Panama uses the metric system of measurements, the Canal still uses the U.S. system.