Canal charges, Suez, Bosphoru CAN

Canal charges, abbreviated as CAN, are fees levied on vessels for transiting major international waterways such as the Suez Canal, Panama Canal, and Bosphorus Strait. These charges are a crucial aspect of international shipping logistics, as they cover the maintenance and operational costs of these critical maritime passages. The fees are collected by the respective canal authorities—such as the Suez Canal Authority or the Panama Canal Authority—and are typically passed on to cargo owners by the shipping carriers as part of the overall freight cost.

The rationale behind these charges lies in the strategic importance of these waterways, which significantly reduce travel distances and time, thereby optimizing global trade routes. For instance, the Suez Canal connects the Mediterranean Sea to the Red Sea, offering a vital shortcut between Europe and Asia, while the Panama Canal provides a crucial link between the Atlantic and Pacific Oceans. The Bosphorus Strait, on the other hand, is a key conduit between the Black Sea and the Mediterranean.

Canal charges are generally calculated based on the vessel's size, type, and the nature of the cargo, alongside specific regulations of each canal authority. It is important for logistics professionals to differentiate canal charges from other related fees, such as port charges or tolls, which pertain to services rendered at specific ports rather than the transit through these global maritime corridors.

In practice, shippers and freight forwarders must be diligent in understanding the breakdown of these charges within their shipping contracts to accurately forecast logistics costs. Additionally, staying informed about any changes in canal fee structures or regulations is essential to avoid unexpected costs and ensure smooth transit through these pivotal international waterways.