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Panama Canal auction fees jump as El Niño limits transit slots
A reported $4m payment to skip the queue came as waits for passage averaged about 10 days, the longest backlog since May, according to Argus Media.
Commercial ships transiting the Panama Canal are facing higher costs after disruption tied to the Iran war and falling water levels linked to the year’s intense El Niño reduced the number of slots available, according to the Guardian Business and Guardian Economics.
The Panama Canal Authority, or ACP, runs daily auctions that let ship owners bid to skip queued vessels. Starting bids open at about $15,000 for smaller cargo ships and $55,000 for the largest ships, with prices able to spike during periods of heavy congestion or high demand.
Ships can also face longer delays as more vessels stay away from the Gulf and the Red Sea after fighting in the Middle East effectively closed the Strait of Hormuz and the Bab al-Mandab. Argus Media said waiting times have risen to about 10 days for passage through the route linking the Pacific and Atlantic Oceans, the largest backlog since May.
One container ship reportedly paid about $4m to jump the queue, a figure Bloomberg linked to the Seaspan Benefactor, a 10,100 TEU vessel. Earlier, the ACP said it would impose further limits in late August as water levels continue to fall.