Panama Canal Sees Record $4 Million Payment for Priority Passage Amid Rising Costs and Drought

The Panama Canal saw a record payment of nearly $4 million from a shipper in an auction to secure priority passage through the congested waterway. This payment is on top of the regular transit fees, making the total cost almost $4.5 million. The CEO of Flex LNG Ltd. and Avance Gas Holding Ltd. expressed concern about the rising costs and the impact on the shipping industry.

The Panama Canal is facing a drought, leading to the risk of major oil tankers coming to a standstill. The canal management authority confirmed the record payment but did not name the winning bidder. The ship, carrying liquefied natural gas, will use the priority passage on November 15. The queue of ships waiting to use the canal has grown in recent months, prompting the authority to impose drastic restrictions and offer companies the chance to bid for priority passage.

The Panama Canal Authority held 140 auctions last month, with three of them resulting in payments of over $1 million. This situation highlights the increasing costs and challenges faced by companies using the canal for shipping. Eneos Group, the winning bidder, did not respond to a request for comment.

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