ADVISORIES ARE AVAILABLE AT http://www.pancanal.com FOR ETAS OR DIRECT COMMUNICATION WITH OUR OFFICES, REFER TO NOTICE N-3-2020 AUTORIDAD DEL CANAL DE PANAMÁ VICE PRESIDENCY FOR TRANSIT BUSINESS 3654-A (NTXI) V. 8-1-2019 ADVISORY TO SHIPPING No. A-03-2020 January 28, 2020 TO : All Shipping Agents, Owners, and Operators SUBJECT: Implementation of Modifications Related to the Panama Canal Water Conservation Strategy Pursuant to the modifications announced by the Panama Canal Authority (ACP) in Advisory to Shipping A-2-2020, the following additional information is provided: 1. Fresh Water Surcharge. Effective February 15, 2020, a fresh water surcharge will be applied to all transiting vessels over 125 feet (38.1 meters) length overall (LOA). This charge will consist of both a fixed component and a variable component, as follows: a) A fixed component applied based on overall vessel length (LOA):  $2,500 per transit to vessels with LOA over 125 feet (38.1meters) and up to 200 feet (60.96 meters);  $5,000 per transit to vessels with LOA over 200 feet (60.96 meters) and up to 300 feet (91.44 meters);  $10,000 per transit to vessels with LOA over 300 feet (91.44 meters). b) A variable component ranging from a minimum of 1 percent of the vessel’s tolls, when Gatun Lake level is above 85.5 feet, to a maximum of 10 percent of the vessel ́s tolls, when Gatun Lake level falls below 72.0 feet. The percentage used to calculate the variable component applicable to each vessel will be based on the level of Gatun Lake on the day prior to the transit, and will be calculated daily using the following formula: 0.10 1+푒 0.6( −82) Where x is the level of Gatun Lake in feet, rounded to one decimal place, as registered at 1200 hours on the day prior to the vessel’s transit. This percentage will be applied to all vessels transiting on the following day. The level of Gatun Lake will be published daily, together with the projected level for the next 60 days. NT, January 28, 2020 Subject: Implementation of Modifications Related to the Panama Canal Water Conservation Strategy For your guidance, the following graph illustrates the value of the fresh water percentage applicable to each level of Gatun Lake: 2. Payment of Transit Reservation (Booking) Fees. Beginning February 15, 2020, the booking fee for all slots allocated during Booking Periods 1, 1.a and 2, including the special period for passenger vessels, shall be paid in full no later than 48 hours after confirmation by the ACP that the slot has been awarded. If the guarantee is not received within the required time, the booking slot will be voided. For slots awarded during Booking Period 3, the booking fees will be charged once the vessel begins its transit, in the same manner as tolls and other transit-related fees. Similarly, booking fees for slots that were allocated prior to February 15, 2020, will be paid once the vessel transits, in the same manner as tolls and other transit-related fees. 3. Modifications to the Auctioned Booking Slot. Two additional slots will be offered through the auction process, one to supers and one to regular vessels, during the 3 rd period only, in any booking condition in effect at the time. These slots will only be available once all the normal booking slots available for that date, for either supers or regulars, independent of each other, have been allocated. NT, January 28, 2020 Subject: Implementation of Modifications Related to the Panama Canal Water Conservation Strategy