Panama Canal tanker pays record $4.6 million to bypass queue

An empty liquefied petroleum gas (LPG) tanker, the G. Arete, has paid a record $4.6 million through an auction to bypass queues at the Panama Canal. Owned by South Korea’s SK Shipping Co., the vessel is scheduled to transit from the Pacific Ocean to the Caribbean side next week.

This record fee follows a near-record $4 million payment made earlier in the week by a container ship. The surge in auction prices is driven by increased congestion and lengthened wait times, with some vessels facing delays of up to 11 days.

The heightened demand for Panama Canal transit is largely attributed to geopolitical tensions involving Iran, which have restricted traffic through the Strait of Hormuz. This disruption has forced shippers to seek alternative routes for energy products, such as those moving from the U.S. Gulf Coast to East Asian markets. Additionally, environmental factors like the El Niño phenomenon have impacted water levels, further complicating canal operations and transit restrictions.