Panama Canal: Ship pays record $5.3 million for faster transit amid drought

A ship has paid a record $5.3 million to secure a faster transit through the Panama Canal, a critical global trade route. This unprecedented payment comes as the canal prepares to significantly reduce the number of daily ship passages due to severe drought conditions exacerbated by the El Niño phenomenon. The waterway, responsible for approximately 5% of the world's maritime commerce, will see its daily transit capacity drop from 36 ships to 34 starting September 3, and further decrease to 32 ships twelve days later.

The reduced capacity is a direct measure to conserve the freshwater reserves stored in the Gatún and Alhajuela artificial lakes, which are essential for the canal's lock operations. These vital water sources have seen diminished levels due to the adverse effects of El Niño. Ilya Espino de Marotta, the designated administrator of the canal, confirmed the record-breaking payment, stating it was the highest amount ever paid for passage, though she did not disclose details about the specific vessel. Bloomberg reported that South Korean company SK Gas Ltd made the payment for the ship G. Spirit to transit on September 1.

Nine out of ten transits through the canal are typically scheduled via reservations, with the remaining slots or those modified due to last-minute contingencies being auctioned. Espino de Marotta explained that with fewer available transits, "there are fewer opportunities to get a reservation," thus increasing the value of these slots. She noted that the price is "dictated by the market" and the "necessity" of the ship. In April, a ship reportedly paid up to $4 million for an urgent transit of hydrocarbons, driven by high demand amid blockades in the Strait of Hormuz. The average auction price between October 2025 and February 2026 was around $55,000, a stark contrast to the recent record payment.