Panama Canal Congestion Forces Ship Owner To Pay Record $4 Million To Skip The Queue

A shipper has paid close to $4 million so that it can jump ahead of the Panama Canal queue, a record high.

Panama Canal
Representation Image

The Eneos Group has reportedly paid about $3.975 million in an auction on Wednesday just to secure crossing, per bidding documents.

That came on top of regular transit fees firms pay, which can be thousands of dollars more.

Getting close to $4.5 million for using the canal indicates that it is pricing out of several vessels, per Oystein Kalleklev, the CEO associated with Flex LNG Ltd. and Avance Gas Holding Ltd., on Wednesday when he was asked regarding the condition of the canal.

Eneos’ shipping division ships different commodities, including liquefied petroleum gas, crude oil, chemicals, and bulk cargo.

Eneos and the Panama Canal Authority did not respond to a request for comment.

A queue of vessels waiting to use the canal has grown exponentially recently and is in a deep drought.

To tackle the situation, the managing authority of the canal has declared more drastic restrictions for a reduced thoroughfare.

The Panama Canal Authority holds auctions for all those who wish to jump to the front of the line readily.

Reference- Bloomberg

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