SIMIC

SK Gas has smashed the record for securing an expedited passage through the Panama Canal, paying $5.3m for a transit slot as drought restrictions and surging demand pile pressure on the waterway.

Bloomberg reports the South Korean company made the winning bid at an auction this week to send the LPG carrier G. Spirit northbound through the canal on September 1. The previous record of $4.6m was set only earlier this month.

The sums illustrate how rapidly the value of guaranteed canal access has escalated. Before the Iran war erupted, the median auction price was around $55,000, according to the Panama Canal Authority.

Vessels arriving without reservations are now facing waits of as much as 11 days.

The worsening congestion comes just as Panama prepares to squeeze capacity further.

As Splash reported last week, daily booking capacity will fall from 34 ships to 32 from mid-September as inadequate rainfall forces the canal to conserve freshwater. From September 3, nine neopanamax and 25 panamax slots will be available, with panamax availability falling to 23 from September 15.

The canal has also been adjusting allowable drafts, although some planned reductions have recently been postponed as officials respond to rapidly changing water levels.

“Tighter booking limits could increase congestion and push more tanker tonnage toward alternative, longer routes if water conditions continue to deteriorate,” broker BRS warned in a new tanker report.

Dry bulk could also benefit from the disruption. MB Shipbrokers said tighter transit availability and draft restrictions could encourage bulkers to route around Africa or Cape Horn, lengthening voyages and supporting tonne-mile demand. The effect could become more pronounced with a strong US grain harvest and the prospect of increased American grain exports to China following recent trade deals.

Panama’s government added to the sense of urgency on Tuesday by declaring a nationwide state of emergency over El Niño.

Authorities said rainfall deficits on the Pacific side have reached as much as 60%, while 11 watersheds are already suffering water stress. El Niño is currently classified locally as very strong and is expected to continue well into 2027.