Tanker Pays Record US$5.3 Million to Transit Panama Canal: Administrator
SK Gas paid a record $5.3 million to move the tanker ahead of planned transit cuts as drought strains canal capacity.
- On Thursday, Panama Canal Authority Deputy Administrator Ilya Espino de Marotta confirmed that South Korean company SK Gas paid a record $5.3 million for priority passage through the Panama Canal for the vessel Spirit, scheduled to transit on September 1.
- Panama declared a national emergency on Tuesday due to severe regional drought driven by El Nino, which has depleted water reserves and forced canal operators to restrict daily ship traffic through the waterway.
- Average auction prices between October and February hovered around $55,000, but demand has surged dramatically; in April, a vessel paid $4 million to skip the line as ships face five-day waits.
- The Panama Canal Authority will reduce daily transits from 36 to 34 starting September 3, with further cuts to 32 planned later in the month to conserve dwindling water reserves.
- El Nino is expected to intensify through May 2027, with rainfall deficits reaching up to 60% on the Pacific side and stressing 11 vital watersheds across the region.
29 Articles
29 Articles
A liquefied gas tanker has paid the record amount of 5.3 million dollars for a passage of the Panama Canal prior to planned ship traffic restrictions due to the climate phenomenon El Niño.
Traffic in this strategic crossing must be reduced from 3 September due to the lack of water associated with the El Niño phenomenon, which reduces the level of the lakes feeding the canal.
The unusual drought in South America forces the operators of the Panama Canal to drastically reduce capacity from September. This leads to a frenzy about the few free passages already in advance.
The passage of the Panama Canal is soon limited due to the climate phenomenon El Niño. A South Korean company therefore paid a record sum to get through.
The Panama Canal is one of the most important trade routes in the world - but an extreme drought forces operators to be restricted. This makes the passage more valuable for shipping companies. A company is now particularly deep in its pockets.
The Authority that manages the sea crossing announced that starting next week it will reduce the number of crossings due to the El Niño phenomenon.
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