A South Korean shipping company has paid a record 5.3 million dollars to secure a priority transit slot through the Panama Canal for a gas tanker as severe drought forces new limits on daily vessel crossings.
South Korean energy firm SK Gas Ltd paid the record auction fee to send the Panamanian-flagged liquefied petroleum gas tanker G. Spirit through the waterway on September 1, according to reporting by Bloomberg. The 5.3 million dollar fee comes on top of standard transit tolls.
Panama Canal designated administrator Ilya Espino de Marotta confirmed the 5.3 million dollar transaction on Thursday in response to questions from AFP. She said it was the largest amount ever paid to transit the interoceanic canal, which handles roughly 5 percent of all global maritime trade.
An AFP news team located the G. Spirit waiting at anchor a few kilometers from the Pacific entrance to the canal on August 28.
Drought Forces Transit Cutbacks
The record payment comes as the Panama Canal Authority prepares to reduce daily vessel transits to save fresh water. Starting September 3, the authority will lower the number of daily vessel crossings from 36 to 34. Twelve days later, on September 15, daily transits will drop further to 32 vessels.
In addition to restricting daily transit numbers, canal administrators have also implemented lower vessel draft limits to manage the crisis. A ship's draft measures the distance between the waterline and the bottom of its hull, and lower draft limits force vessels to carry lighter loads.
The canal relies entirely on rainwater stored in two artificial reservoirs, Gatún Lake and Alhajuela Lake, to supply its lock system. Each vessel passing through the canal flushes millions of gallons of fresh water into the sea. The El Niño climate phenomenon has caused severe rainfall shortages across Central America, sharply reducing water levels in both lakes.
The Panama Canal is a 50-mile artificial waterway across the Isthmus of Panama that connects the Atlantic and Pacific oceans. It serves as a critical shortcut for commercial shipping between the United States, China, South Korea, and Japan, allowing vessels to bypass the long voyage around South America.
Auction Prices Soar Amid Delays
About nine out of every ten canal crossings are scheduled through standard advance reservations. The primary users of the interoceanic route are shipping companies operating between the United States and China. The remaining transit slots, along with slots created by last-minute schedule modifications, are sold through competitive auctions.
Espino de Marotta, who formally assumes office as canal administrator on September 7, explained that reduced daily transits leave fewer reservation slots available. She said this scarcity makes open slots more valuable, with final auction prices dictated by market demand and the specific needs of individual vessels. She added that the authority had seen three unusually high auction bids recently.
Although individual shipping payments remain confidential, figures published by the Panama Canal Authority show that the average auction price between October 2025 and February 2026 was approximately 55,000 dollars. In April, a vessel paid up to 4 million dollars for an expedited transit to move hydrocarbons amid heightened demand caused by a blockade in the Strait of Hormuz.
Backlog of Waiting Ships
Former canal administrator Jorge Quijano warned on Friday that auction prices could reach even higher levels because more than 120 ships are waiting to cross the waterway. He noted that ships without advance reservations face pressure to win auction slots so they can deliver cargo on time and avoid million-dollar fines from clients.
Quijano stated that the decision on how much to bid rests with the owner of the cargo and the company under contract to transport it. The G. Spirit carries liquefied petroleum gas, a mixture of propane and butane used extensively across East Asia for heating, industrial manufacturing, and power generation.
SK Gas Ltd is South Korea's largest importer and supplier of liquefied petroleum gas, distributing fuel across Asian markets. The Panama Canal Authority is an autonomous Panamanian state agency responsible for the operation, maintenance, and management of the canal.
