ITIC covers US$ 94,000 in fees after Panama Canal authorities deny cancellation request

ITIC has reimbursed a ship agent US$ 94,000 after their request to cancel a slot they booked by mistake for transit through the Panama Canal was denied.

The ship agent was asked by their principal to enquire whether there was space to transit through the Panama Canal on a specific date.

However, the agent misunderstood the request to check if a slot would be available and instead booked the slot.

Ultimately, the principal did not require the slot at all but when the agent tried to void the booking, the canal authority denied their request.

They therefore had to cancel the booking which led to cancellation fees of US$ 94,000 being charged.

A mitigation request to the authority was denied. The principal sought recovery of these charges from the agent. The agent had no defence and the claim was settled in full.