Tanker pays record R85 million for priority Panama Canal transit ahead of El Niño curbs

A tanker carrying liquefied petroleum gas paid $5.3 million (R84.8 million) for priority passage through the Panama Canal ahead of planned transit reductions linked to El Niño, the canal’s deputy administrator told AFP.

Who paid and why

Panama Canal deputy administrator Ilya Espino de Marotta told AFP that South Korean company SK Gas paid the record sum so the tanker G. Spirit could transit the waterway on September 1. The transit was scheduled two days before canal authorities reduce the number of daily transits because of El Niño-related conditions.

El Niño, drought and lower water levels

Panama declared an emergency over El Niño after a severe drought caused dwindling water levels in the canal. El Niño is a weather pattern that raises surface temperatures in parts of the Pacific and drives global shifts in winds, rainfall and weather.

How transit booking and auctions work

Ships normally book passage through the Panama Canal well in advance. According to AFP, ships without bookings wait an average of five days to get through. There is also an auction mechanism that allows last-minute transits to be purchased.

The Panama Canal Authority said the average auction price between October 2025 and February 2026 was around $55,000. In April, a vessel carrying liquefied natural gas paid $4 million to jump the queue amid higher demand linked to the war in the Middle East, AFP reported.

Operational cuts and global importance

The canal, which handles five percent of global maritime trade, will cut the number of daily transits from 36 to 34 from September 3, and then to 32 later in the month, the report said.

Implications

With fewer daily slots and an auction system for last-minute passage, large payments for priority transits have emerged as a way to avoid delays when water levels and transit availability are constrained.