CB Fenton – Panama

Can you tell us about the history of CB FENTON?  Where does the name come from? What is your main line of logistics business nowadays?

C.B. Fenton & Co. was founded in 1916 by New Zealand native Charles Butler Fenton, specifically to provide port agency services for vessels navigating the newly opened Panama Canal. Over the past century, the company has remained steadfast in its commitment to addressing the transit and operational needs of ship owners, consistently striving to uphold the highest standards for its global clientele while adapting to the ever-changing maritime landscape.

In 2012, C.B. Fenton & Co. became part of Ultramar (Chile), integrating into a global network of ship agencies and maritime businesses that collectively employ over 14,000 people worldwide. This acquisition paved the way for the establishment of our logistics division, ULOG, allowing us to expand our service offerings to encompass comprehensive logistics solutions, as well as inland, maritime, and air freight services.

Looking ahead to 2025, the logistics segment of our business will transition to Vectorial Logistics, an already established company within the CB Fenton group, further enhancing our capabilities in delivering tailored logistics solutions.

I understand that you are acting both as a liner agent & a logistics provider.  With the location of Panama strategically between the giant oceans on each side, what can you tell our readers about the local logistical services you currently offer?   As a liner agent, which lines do you currently represent?

Answering your question, yes, CBF represents the Taiwanese container shipping line, Yang Ming as their commercial and port agents here in Panama. Yang Ming is number 9^th in the global market, and CB Fenton is the 5th top agent in the region.  

In CB Fenton, we are a shipping agency, so as Panama Canal agents, we ensure that vessels are serviced quickly and reliably, minimizing downtime and optimizing supply chain efficiency.

On the other hand, the logistics area, represented by ULOG, also offers extensive warehousing solutions strategically located near major ports and within the cargo airport. Our facilities are equipped to handle a wide variety of goods, from sensitive items to heavy machinery, ensuring that products are stored securely and accessible for rapid distribution.  

We have an expert air team, experienced as a time-critical logistics provider at Tocumen Airport.

In addition, our logistics services include inland transportation. Our commitment to agility and responsiveness means we can adapt to dynamic market demands, providing customized transportation solutions that meet our customers’ specific needs. Our expertise in customs compliance ensures excellent service, reducing delays and increasing reliability.   

The projects area is dedicated to delivering comprehensive solutions tailored to meet the complex demands of large-scale logistics projects. This includes a robust framework and a wealth of experience, equipped to handle a diverse range of projects across various industries, ensuring correct execution from start to finish.

There is a lot of competition in Panama in the field of logistics.  Can you give our readers a few comments on your strengths?

In a landscape as competitive as Panama’s, logistics companies must carve out a niche in order to stand out. With the country’s strategic location and solid infrastructure, the opportunities are enormous, but so are the challenges. Some strategies to differentiate ourselves have been:  

– Our culture: As a proud member of the Ultramar Group, we combine our strong local knowledge with our international experience, allowing us to navigate the complexities of the market with confidence. 

– Consistently exceptional customer services: A strong commitment to customer satisfaction can set a logistics company apart. Offering personalized support, fast response times and proactive communication can foster long-term relationships and customer loyalty. 

– The highest standards: We prioritize health, safety and environmental standards, ensuring excellence in every delivery.

– Flexible solutions: We offer customizable logistics solutions that can cater to a diverse clientele. By allowing our customers to choose from a wide range of services, whether warehousing, distribution or freight forwarding, we can adapt to changing market demands.

– Specialized services: Focused on niche markets, we can offer tailored solutions that meet the unique needs of customers in niche sectors.

The Panama Canal is vital for world trade. There was a situation recently with “lack of water.” Can you explain to our readers the situation before and now for this waterway?

Indeed, the Panama Canal is crucial for global shipping and, as you mention, it was severely impacted in 2023/early 2024 by an unprecedented drought condition. In fact, Panama experienced one of its driest years since the 50s as a consequence of the El Niño climate event. The result was historically low water levels in key reservoirs like Gatun Lake, essential for canal operations.

This drought reduced rainfall by up to 43% below average, limiting the canal’s ability to handle its usual traffic volume and forcing the Panama Canal Authority (ACP) to impose transit restrictions to conserve water. In response, the canal gradually cut down its daily transits from a typical volume of 36-38 to 22 in December 2023, allowing only booked vessels to pass. 

The situation has improved in 2024, and the number of slots available for booking has been gradually increased by the Panama Canal Authority during this year. As of today, the number of slots per day is 36, and it will remain like this until further notice. The option to transit without a booking will continue to be suspended. 

Although the ACP has implemented water conservation strategies, including reusing water within the locks, the region’s climate challenges suggest that these water shortages could become recurring issues. Looking forward, the ACP is exploring longer-term solutions, such as constructing new reservoirs (Rio Indio), but these projects would take at least 6–7 years to be completed.

Panama also has free trade zones that might be interesting for clients abroad. Is that something that you are able to offer as well?  What more can you tell about this?

Panama has firmly established itself as a premier trade and logistics hub in the Americas, driven by its strategic geographic location. Our nation boasts state-of-the-art port facilities and a highly skilled workforce, renowned for their expertise in logistics.

One of the standout features of Panama is its free trade zones—designated areas within the country that operate under special customs and tax regimes aimed at fostering investment and boosting international trade. These zones have become dynamic engines of development, attracting both national and international companies.

The latest update that I have in my head is that currently Panama has 21 special economic zones, including prominent ones like the Colón Free Zone, Pana Park, and the Panama Pacifico Special Economic Zone, along with 19 additional free trade zones. Most of these active zones are strategically located in Panama City, along the Panama Canal, and in the city of Colón.

Each free trade zone operates under tailored regulations, outlining permitted activities and functions. Rather than competing with one another, these zones complement each other by focusing on different economic sectors and activities.

Investors can benefit from significant tax incentives, including:

-Complete exemptions from taxes and import duties on raw materials, semi-finished products, and other essential inputs for operations.
-Exemption from income tax.
-Exemption from export taxes, facilitating and promoting export activities.

With a range of additional incentives, Panama’s free trade zones present an attractive opportunity for companies looking to expand. 

For all these reasons Panama has become a reference for the region. So, companies wishing to have a presence in the Americas are invited to get to know our logistical advantages.

How do you promote your company internationally?

Ulog as a group has a presence in the Americas with its own offices. In Europe and Asia, we work with reliable agents. 

We are well known internationally, but we are always at the forefront of the market promoting our company internationally. Because we know that it is important to always improve our global visibility, we continuously participate in key industry events to establish contacts with potential clients and partners. Being present at these events allows us to promote our services, gather information about the market and foster relationships with other players in the industry. Another key point is that participation in international logistics and trade associations that serve to expand our network can lead to valuable connections and enhance our company’s credibility within the industry.  

How is it best for our readers to get in touch with you?

We can be reached via phone and WhatsApp: 
Marianela Magallon:  +507-6227-0797 &  Mariam Gutierrez: +507-6888-5357
Email: logistics@cbfenton.com
Website: https://www.cbfenton.com/
Also on social media, follow us on Linkedin: 
www.linkedin.com/in/marianelamagallon
www.linkedin.com/company/cbfenton