A vessel paid a record $5.3 million to secure a priority transit slot through the Panama Canal, as wait times at the waterway continue to grow.
According to Kuehne+Nagel, the transit slot was sold to South Korean LPG carrier G. Spirit on September 1, beating the previous record of $4.6 million set in August, and fetching nearly 100 times the median auction price prior to February. This comes as vessels at the Panama Canal have reported wait times of up to 11 days, driven by historic drought conditions that have limited capacity through the waterway.
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Rainfall in the canal watershed from May-August was down 34% compared to the historical average for that period, while water inflows were 44% lower. That forced the Panama Canal Authority to enact cuts to daily transit capacity for just the second time in its history, right as disruptions in the Middle East have created more demand for access to the canal, particularly for LNG and LPG carriers.
And as more ships arrive at the canal with fewer pre-booked slots available, demand has surged for daily auctions that allow vessels to pay for priority passage.
"We had 18 bidders for one slot — that's a lot," said Panama Canal Authority administrator Ricaurte Vasquez. "Normally you have two to three per day."
The authority also stressed that a confirmed booking is the only way to guarantee a transit day through the canal. With fewer available slots and increased demand, vessels without reservations face a higher risk of extended wait times, higher voyage costs and possible rerouting.
