Ships in the Panama Canal are reportedly waiting up to 10 days for their turn to pass through the Panama Canal, representing the largest backlog since May.
According to Financial Times, 113 vessels were in line to transit the Panama Canal as of August 3, compared to just 40 vessels that were in line in early January.
The ships can either wait to use slots they booked ahead, or take part in daily auctions to jump the vessel queue. That is becoming an increasingly pricey option. One container ship recently paid $4 million to move to the front of the line, The Guardian reports, more than double the average bid placed during the previous seven days.
The average price for an auction slot in the month of August so far has already spiked to $1.1 million, more than 16 times compared to a year earlier.
But even throwing money at the problem is not enough if your ship is simply too big. As Super El Niño conditions have driven down water levels in the locks that feed into the canal, the Panama Canal Authority has implemented a schedule of restrictions on the draft of vessels it can accept for transit, from 40 feet in July, to 48 feet from August 26, and 47.5 feet from September 3.
Data from market intelligence firm Argus Media estimates that water levels in the canal's Gatun Lake are below 1965-2022 historical averages, and are expected to fall even further in the months ahead. Although levels are higher than they were during a 2023 drought, the projected dip for 2026 could be much steeper, Argus warns.
