AUTORIDAD DEL CANAL DE PANAMÁ EXECUTIVE VICE PRESIDENCY FOR OPERATIONS 3654-A (OPXI) V. 4-2-2015 ADVISORIES ARE AVAILABLE AT http://www.pancanal.com FOR ETAS OR DIRECT COMMUNICATION WITH OUR OFFICES, REFER TO NOTICE N-3-2018 ADVISORY TO SHIPPING No. A-29-2018 August 31, 2018 TO : All Shipping Agents, Owners, and Operators SUBJECT: Modifications to the Transit Reservation System Rules for Neopanamax Vessels Beginning October 1, 2018, certain navigation restrictions currently imposed on LNG vessels will be lifted. Specifically, meetings between opposing LNG vessels in Gatun Lake will be allowed, as well as transiting during hours of darkness in certain areas of the Canal. In order to maximize the benefits of these new navigation rules, modifications to the Transit Reservation (Booking) System for Neopanamax vessels are required. The following changes are the result of in-depth analysis of the needs of this market segment and consultation with our customers. Among the main issues addressed were the need to increase the number of LNG vessels that may book per day, and adjustment of the booking periods based on the needs of the LNG industry, which include the spot and long term contracts market (Annual Delivery Program) scheduling. The modifications to the reservation system also address the current practice by some LNG customers of acquiring booking slots during the first period competition, to the point where these slots are nearly sold out up to 365 days in advance, while in reality these slots are only used on average 60 percent of the time. This practice is detrimental since it creates the perception that the Panama Canal does not have the capacity to handle the actual LNG demand, affecting not only the best interests of the Panama Canal Authority (ACP) and the LNG industry, but of other customers as well. These modifications will allow the Panama Canal to better handle the present and expected demand for LNG vessel transit slots by providing the certainty and flexibility required by the LNG market segment. These changes should also improve the efficiency of the transit reservation system, which will benefit all users of the Neopanamax locks. The modifications that will be implemented for Neopanamax vessels include a new booking period within the 1 st Booking Period; modifications in the duration of the periods; redistribution of slots within the periods; modifications to the cancellation fee structure; as well as other modifications, which will become effective October 1, 2018. Modifications to the Neopanamax Booking periods. 1. The 1 st Booking Period for Neopanamax vessels will extend from 365 days to 81 days prior to the booking date. 3654-A (OPXI) V. 4-2-2015 OP, August 31, 2018 Subject: Modifications to the Transit Reservation System Rules for Neopanamax Vessels 2. A new booking period, called Booking Period 1.a, will extend from 80 days to 31 days prior to the booking date. 3. The 2 nd Booking Period will extend from 30 days to 4 days prior to the transit date. Distribution and Allocation of Booking Slots per Booking Periods. 1. During the 1 st Booking Period, a total of three (3) slots will be offered to all interested vessels, except LNG vessels. Of these three (3), a maximum of two (2) may be allocated to vessels transiting in the northbound direction, and a maximum of one (1) may be allocated to vessels transiting in the southbound direction. LNG vessels will not be allowed to book during the 1 st Booking Period beginning wit