[Federal Register Volume 62, Number 178 (Monday, September 15, 1997)]
[Rules and Regulations]
[Pages 48178-48181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24310]
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PANAMA CANAL COMMISSION
35 CFR Part 104
RIN 3207-AA40
Vessel Transit Reservation System
AGENCY: Panama Canal Commission.
ACTION: Final rule.
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SUMMARY: This document announces the final rule constituting the Panama
Canal Vessel Transit Reservation System, which allows vessels to
reserve transit slots in advance of arrival at the Panama Canal and be
moved through the Canal on pre-assigned dates.
DATES: The effective time and date of the final rule is 12:00 Midnight
(2400 hrs) (Panama time), September 30, 1997.
FOR FURTHER INFORMATION CONTACT: Chief of the Economic Research and
Market Development Division, Panama Canal Commission, Unit 2300, APO AA
34011-2300, Telephone 011-507-272-3586; Fax 011-507-272-1622; E-mail:
[email protected]
SUPPLEMENTARY INFORMATION: On April 15, 1997, the Panama Canal
Commission (PCC) published in the Federal Register (Volume 62, Number
72, Pages 18275-18277), an interim rule to test a revised vessel
transit reservation system, which test commenced at 2:00 P.M. (1400
hrs), April 21, 1997. The 120-day test period ended on August 20, 1997.
The test comment period, however, pursuant to Marine Director's Notice
To Shipping Nos. N-7-97, Rev. 3 (dtd 8/8/97) and N-7-97, Rev. 4 (dtd 8/
22/97), was extended to close of business, September 5, 1997.
Throughout the comment period, PCC received both formal and
informal comments, in writing and orally, from ship agents, owners and
operators and maritime industry trade groups. These comments included
proposals that PCC abolish the vessel transit reservation system and
revert to a first come-first serve system, that PCC delay full
implementation of the system for cruise line customers, complaints
about various components of the test system, and suggestions and
proposals to improve and facilitate implementation of the test system
on a permanent basis.
During the test, PCC gained valuable hands-on experience with all
operational aspects of the test system. The empirical, statistical and
other data gathered during the test was beneficial in assessing the
actual impact of the test system on a representative cross-section of
Canal customers.
Specifically, the test revealed that overall utilization of the 21
reserved transit slots available for all three booking periods did not
appreciably change in the second and third booking periods. The (new)
first booking period was utilized principally by passenger vessels. The
test also revealed that, based on current Canal capacity, 21 reserved
transit slots is the maximum number that the system can accommodate,
consistent with safe and efficient operation of the Canal. On the other
hand, allocation of the 21 reserved transit slots among the three
booking periods is an area in which operational considerations afford
PCC some flexibility. PCC, therefore, will continue to monitor and,
where appropriate, may periodically change the number of reserved
transit slots allocated among the three booking periods, as well as
allocations among various vessel types. Any such changes will be
announced in future Marine Director's notices to shipping.
Changing the number of days that comprise each of the three booking
periods, as some customers urged, would not have any foreseeable
adverse impact on Canal operations. Any such changes, however, while no
doubt benefiting some customers, would negatively impact others.
Balancing fairness and equity for all Canal customers, the final rule
does not change the length of any of the three booking periods.
Missing from the interim rule was criteria for canceling transit
``condition 3'', which triggers the additional booking fee whenever the
total number of vessels awaiting transit at both termini of the Canal
is projected by Canal authorities to be, within 2 days, 90 or more
vessels for at least 2 consecutive days (hereafter, ``premium booking
fee''). Seesaw declarations and cancellations of condition 3 in
response to fluctuating vessel arrivals/departures disrupted orderly
operation of the system and, on occasion, resulted in hardship for some
customers required to pay the premium fee. PCC, therefore, will adopt
an implementation provision (to be announced in a Marine Director's
notice to shipping), stating that, following invocation, Canal
authorities will revoke condition 3 whenever the number of vessels
awaiting transit is projected to be reduced to 80 or fewer vessels.
Concerning the premium booking fee, this feature of the test, by
far, generated the most comment and criticism from Canal customers.
Consideration was given to eliminating or reducing the amount of the
fee. After careful review and reconsideration, however, PCC reaffirms
its original assessment, made on the basis of objective economic data,
that payment of the current premium booking fee to secure expeditious
transit of the Canal during periods when condition 3 is in effect,
affords customers who utilize this service tangible economic benefits,
when compared to the high costs of transit delays of uncertain duration
during such periods. Nevertheless, PCC is sensitive to customer
complaints that the factors which cause condition 3 to be invoked are
largely beyond their control. Consequently, PCC will redouble efforts
to schedule maintenance, Canal improvement projects and other
activities that adversely impact transit operations, to the extent
practicable, so as to minimize
[[Page 48179]]
the number of occasions when condition 3 is actually invoked,
including, giving notice to Canal customers as far in advance as
reasonably possible. In addition, PCC will guarantee a vessel booked
for transit a reserved transit slot at the booking fee rate in effect
at the time of booking, irrespective of any premium booking fee that
may be in effect at the time of actual transit.
The test revealed certain deficiencies in the schedule of
cancellation fees reflected in section 104.9 of the interim rule. The
revised cancellation fee schedule set forth in the final rule tracks
the prescribed booking periods and provides for progressive
cancellation fees for vessels booked for transit in all three booking
periods. The restructured cancellation fees, especially those for
cancellations made upon short notice, are expected to increase booking
opportunities for Canal customers, particularly in the third booking
period.
Based upon historical criteria no longer relevant, commercial
passenger vessels had previously been afforded a transit preference,
without being subjected to the terms and costs of the vessel transit
reservation system. Commencing with the test, passenger vessels were
required to reserve transit slots, the same as other vessels, in order
to obtain transit preference. During the test period, however,
passenger vessels booked for transit were afforded transitional relief
by not having to pay the prescribed booking and other fees paid by
other vessels. PCC provided these vessels a statement, however, showing
what the booking fee for the reserved transit would have been had
transitional relief not been in effect. Commencing on the effective
date of the final rule, passenger vessels will be subject to all
requirements of the system, including payment of the prescribed fees.
Cruise line customers stated that the test did not afford them
sufficient time to build the additional costs of the final rule into
their business plans and fee schedules, thereby justifying an extension
of transitional relief through the remainder of the 1997 and the 1998
cruise seasons. It is noted, however, that the standard industry
practice of cruise lines is to reserve the right to change published
passenger fee schedules without notice. This protects cruise lines from
having to absorb unanticipated higher operating costs that might be
incurred after publication. Moreover, cruise line customers had a full
6 months to make whatever operational and financial adjustments might
be necessary by reason of PCC's implementation of the final rule.
Specifically, throughout the 184-day comment period, that commenced on
March 5, 1997 and ended on September 5, 1997, cruise line customers
were provided financial and other data that should have enabled them to
calculate their higher costs by reason of their being subjected to the
requirements of the vessel transit reservation system. Given the
extraordinary length of the comment period, the right of cruise lines
to adjust fee schedules and the data provided throughout the test, PCC
believes the test period was sufficient to enable cruise line customers
to familiarize themselves adequately with all operational and financial
components of the test system, thus making additional transitional
relief unnecessary.
This final rule involves public property, the Panama Canal, and,
therefore, is excluded from coverage of the Administrative Procedures
Act (APA). 5 USC 553(a)(2). Nevertheless, in testing the interim rule,
PCC elected generally to follow the notice-and-comment rule-making
procedures of section 553. In establishing the effective date of the
final rule, however, PCC elected not to follow the delayed effective
date provision of section 553(d). The effective date of this final
rule, therefore, is 12:00 Midnight (2400 hrs) (Panama time), September
30, 1997.
Until the final rule announced in this document takes effect, the
interim rule published in the Federal Register (Volume 62, Number 72,
Pages 18275-18277) and implementation provisions announced in Marine
Director's notices to shipping, will continue to govern vessel transit
reservations at the Panama Canal.
The final rule announced in this document constitutes the Panama
Canal Vessel Transit Reservation System that, based on the subject
test, PCC believes best serves the needs of PCC, commensurate with
safety and efficiency, and the world shipping industry.
PCC is exempt from Executive Order 12866. The provisions of that
directive, therefore, do not apply to this final rule. Even if the
Order was applicable, this final rule would not have any significant
economic impact on any substantial number of small entities under the
Regulatory Flexibility Act of 1980.
Additionally, PCC has determined that implementation of this final
rule will not have an adverse effect on competition, employment,
investment, productivity, innovation, or the ability of U.S.-based
enterprises to compete with foreign-based enterprises in domestic or
foreign markets.
The Secretary of PCC certifies that these regulatory changes meet
the applicable standards contained in sections 3(a) and 3(b)(2) of
Executive Order No. 12988 of February 7, 1996.
List of Subjects in 35 CFR Part 104
Panama Canal, Reporting and recordkeeping requirements, Vessels.
Accordingly, Part 104 is revised to read as follows:
PART 104--VESSEL TRANSIT RESERVATION SYSTEM
Sec.
104.1 Applicability and scope.
104.2 Definitions.
104.3 Booking periods; allocation of reserved slots.
104.4 Booked transits.
104.5 Passenger vessel preference; priority transits.
104.6 Booking fees.
104.7 Penalties.
104.8 Re-scheduling.
104.9 Cancellations.
104.10 Regular transits.
104.11 Temporary suspension of system.
104.12 Further implementation.
Authority: 22 U.S.C. 3811.
Sec. 104.1 Applicability and scope.
Subject to the limitations imposed by Article III of the 1901
Treaty to Facilitate the Construction of a Ship Canal, entered into by
the United States and Great Britain, and by Articles II and VI of the
1977 Treaty concerning the Permanent Neutrality and Operation of the
Panama Canal, between the United States and the Republic of Panama, and
subject to compliance with the provisions of this part, the Panama
Canal Vessel Transit Reservation System allows vessels, including
certain commercial passenger vessels, desiring transit of the Panama
Canal, to reserve transit slots in advance of arrival at the Canal and
be moved through the Canal on pre-assigned dates.
Sec. 104.2 Definitions.
(a) Booked for transit means that a vessel, in advance of arriving
at the Canal, has been assigned a specific date by Canal authorities on
which it will be moved through the Canal and that the vessel has
otherwise complied with the provisions of this part.
(b) Commercial passenger vessel means a vessel that principally
transports passengers, as opposed to cargo, and runs on fixed published
schedules.
(c) Regular transit means movement through the Canal of a vessel
that has not been booked for transit.
(d) Required arrival time means the date and the hour of the day
established by Canal authorities as the deadline by
[[Page 48180]]
which a vessel booked for transit must arrive at a terminus of the
Canal in order to transit on its reserved transit date.
(e) Vessel agent means a person or entity that has been authorized
by a vessel owner or operator, in the manner prescribed by Canal
authorities, to book vessels for transit in accordance with this part.
Sec. 104.3 Booking periods; allocation of reserved slots.
(a) Vessel agents only may request reserved transit slots for
vessels during the following booking periods:
(1) First period--365 to 22 days prior to the requested transit
date.
(2) Second period--21 to 4 days prior to the requested transit
date.
(3) Third period--3 to 2 days prior to the requested transit date.
(b) A total of 21 reserved transit slots will be made available for
all three booking periods, allocation of which among the booking
periods is to be determined by Canal authorities. Canal authorities,
from time to time, may adjust the total number of available reserved
transit slots, commensurate with continued safe and efficient operation
of the Canal.
Sec. 104.4 Booked transits.
(a) The specific daily order of vessels and mix of vessel types
transiting the Canal, whether booked or regular transits, shall be
determined by Canal authorities. Except as provided in this part, a
vessel booked for transit may not transit prior to its reserved transit
date, unless Canal authorities determine that assigning the vessel an
earlier transit slot would not impair safe and efficient operation of
the Canal.
(b) Notwithstanding assignment of an earlier reserved transit slot
by Canal authorities, all vessels booked for transit will be charged
the prescribed booking fee.
(c) Substitution of reserved transit slots between or among vessels
booked for transit will be permitted only on conditions specified by
Canal authorities.
Sec. 104.5 Passenger vessel preference; priority transits.
(a) Subject to being booked for transit and to the extent Canal
authorities determine preference does not impair safe and efficient
operation of the Canal, commercial passenger vessels running on fixed
published schedules will be given preference over other vessels in
transiting.
(b) Notwithstanding any contrary provision, from time to time, any
vessel, whether or not subject to the vessel transit reservation system
(including, but not limited to certain warships), as determined by
Canal authorities, may be moved through the Canal on a priority basis.
Sec. 104.6 Booking fees.
(a) The booking fee for reserving a transit slot for a vessel
measured in accordance with Sec. 135.13(a) of this chapter, shall be
$0.26 per PC/UMS Net Ton, or $1500, whichever is greater.
(b) The booking fee for reserving a transit slot for a vessel
subject to transitional relief measures and measured in accordance with
Sec. 135.13(b) of this chapter, shall be $0.23 per Panama Canal Gross
Ton, as specified on the last tonnage certificate issued to the vessel
by Canal authorities between March 23, 1976 and September 30, 1994,
inclusive, plus $0.26 per PC/UMS Net Ton of on-deck capacity, or $1500,
whichever is greater.
(c) Whenever the total number of vessels awaiting transit at both
termini of the Canal is projected by Canal authorities to be, within 2
days, 90 or more vessels for at least 2 consecutive days, any vessel
booked for transit that transits the Canal while this condition is in
effect, shall automatically be assessed a booking fee of $0.69 per PC/
UMS Net Ton, or $4000, whichever is greater.
(d) Notwithstanding the provisions of paragraph (c) of this section
or any other contrary provision of this part, Canal authorities will
guarantee a vessel booked for transit, a reserved transit slot at the
booking fee rate in effect at the time the vessel is booked for
transit, irrespective of any premium booking fee rate that may be in
effect at the time the vessel actually transits the Canal.
Sec. 104.7 Penalties.
(a) The reserved transit slot of a vessel booked for transit will
be canceled by Canal authorities and a penalty fee assessed in a sum
equal to the prescribed booking fee, or $1500, whichever is greater, in
the following situations:
(1) When a vessel that is subject to transit restrictions (e.g.,
clear cut, clear cut daylight) has been booked for transit and does not
arrive at a terminus of the Canal by 0200 hours of the day of the
scheduled transit;
(2) When a vessel that is not subject to transit restrictions has
been booked for transit and does not arrive at a terminus of the Canal
by 1400 hours of the day of the scheduled transit; or
(3) When a vessel booked for transit arrives on time but cannot or,
at the vessel operator's election, does not transit as scheduled,
despite the readiness of Canal authorities to proceed.
(b) Canal authorities may waive assessment of a penalty fee if the
vessel agent presents acceptable proof that late arrival of the vessel
was due to a medical or humanitarian emergency arising during the
voyage, or a naturally occurring, extraordinary phenomenon or event of
major proportions that could not have been reasonably predicted in
advance.
(c) Failure of the vessel agent to provide complete and accurate
information required by Canal authorities when requesting transit
bookings may result in rejection of the booking request or cancellation
of the vessel's reserved transit slot.
(d) When a vessel's reserved transit slot is canceled, and unless
otherwise directed by the vessel agent, upon arrival, Canal authorities
will re-schedule the vessel for regular transit.
Sec. 104.8 Re-scheduling.
(a) Except as otherwise provided and without the vessel booked for
transit being assessed a penalty fee, the vessel agent may request
cancellation of a vessel's reserved transit slot and rescheduling of
the vessel for regular transit or, alternatively, may request
assignment of an alternate reserved transit slot, in the following
situations:
(1) If for whatever reason Canal authorities cancel the transit of
a vessel booked for transit that is otherwise ready to proceed as
scheduled; or
(2) If for whatever reason Canal authorities delay the transit of a
vessel booked for transit to such a degree that the delay is likely to
cause the vessel to be unable to meet its required arrival time for a
later, second reserved transit, booked before the delay of the first
reserved transit occurred.
(b) A vessel booked for transit will be deemed to have transited
the Canal on its reserved transit date if the vessel arrives at the
first set of locks at either terminus of the Canal prior to 2400 hours
that day and its in-transit time (ITT) is 18 hours or less. ITT begins
when the vessel enters the first set of locks at either Canal terminus
and ends when the vessel departs the last set of locks at the opposite
terminus. No booking fee will be charged if, due to events that are
beyond the control of the vessel booked for transit, as determined by
Canal authorities, ITT exceeds 18 hours; except that this provision
shall not apply in the case of a turn-around transit, where the vessel
enters and exits the same set of locks at either Canal terminus.
[[Page 48181]]
Sec. 104.9 Cancellations.
(a) A vessel agent may cancel the transit reservation of a vessel
by giving notice prescribed by Canal authorities. In such event, and
except as otherwise provided, a cancellation fee will be charged. The
amount of the fee will depend on the amount of notice (days or hours)
received by Canal authorities in advance of the vessel's required
arrival time, according to the following schedule:
------------------------------------------------------------------------
Notice periods (in advance of required Cancellation fee (the
arrival time) greater of)
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31 to 364 days............................ 10% of booking fee or $500.
22 to 30 days............................. 40% of booking fee or $750.
4 to 21 days.............................. 60% of booking fee or $1000.
3 days to 8 hours......................... 80% of booking fee or
$1,250.
Less than 8 hours......................... 100% of booking fee.
------------------------------------------------------------------------
(b) Receipt of notice of cancellation of a transit reservation by
Canal authorities after the vessel's required arrival time will result
in levy of a cancellation fee equal to the entire prescribed booking
fee.
Sec. 104.10 Regular transits.
Vessels that are not booked for transit will be scheduled for
movement through the Canal on the date and in the order determined by
Canal authorities. In establishing the daily schedule of vessels to be
moved through the Canal, the order in which vessels arrive is only one
of several considerations. In general, regular transits will equal or
exceed in number, one-half the total number of daily vessel transits.
Sec. 104.11 Temporary suspension of system.
(a) Canal authorities may temporarily suspend, in whole or in part,
for whatever period of time deemed necessary, the vessel transit
reservation system established by this part, whenever Canal authorities
determine that such action is necessary to ensure continued safe and
efficient operation of the Canal.
(b) No penalty or fee will be levied against any vessel booked for
transit whose reserved transit slot is canceled by reason of a
temporary suspension of the system pursuant to this section.
Sec. 104.12 Further implementation.
(a) To facilitate safe and efficient operation of the system, Canal
authorities may establish additional policies and procedures, define
additional terms and issue clarifications and interpretations not
inconsistent with the provisions of this part. Such further
implementation will be published and distributed to Canal customers
through notices to shipping or other appropriate means determined by
Canal authorities.
(b) In the event any provision of this part conflicts with any
implementation provision issued pursuant to this section, the
provisions of this part shall govern.
Dated: September 9, 1997.
John A. Mills,
Secretary, Panama Canal Commission.
[FR Doc. 97-24310 Filed 9-12-97; 8:45 am]
BILLING CODE 3640-04-U