Shippers must pay substantial amounts if their carriers want to beat a logjam of vessels waiting to cross the drought-impacted Panama Canal.
One recently had to pay $2.4 million — besides a transit fee of approximately $400,000 — to get a slot permit for its carrier to traverse the channel faster, shipping firm Avance Gas Holding Ltd. mentioned in its weekly earnings.
A queue of vessels has been rising in recent months as drought indicates less water to fill the canal locks. This resulted in fewer ships transiting and being loaded with less cargo — all of this has added to the backlog at a waterway that handles over half a billion tons of cargo yearly.
Panama Canal Authority holds auctions for those who desire to queue jump.
One can easily skip the queue, but it is immensely costly, mentioned Oystein Kalleklev, Avance Gas’s CEO. It has gone up rapidly. When adding the regular fee, one gets closer to $3 million to get the vessels through.
The fee is notably a record high and was to permit the sail of a liquefied petroleum gas bulk carrier, per data on slot auctions observed by Bloomberg. Panama Canal Authority did not comment immediately.
References: Economic Times, Gulf News, Ajot
Shipping News You Would Like:
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Latest Shipping News You Would Like:
Get the Latest Maritime News Delivered to Your Inbox!
Our free, fast, and fun newsletter on the global maritime industry, delivered everyday.