The auction fee for priority transit through the Panama Canal has reached a new record of US$5.3 million, reflecting a short-term surge in canal transit demand.

Due to severe El Niño conditions, water levels in the Panama Canal have fallen, forcing the Panama Canal Authority to introduce restrictions including lower draft limits and fewer daily vessel transits.

For vessels under schedule pressure, priority transit slots must be obtained through auction, often referred to as a “queue-jumping fee”.

According to sources, South Korea’s SK Gas Ltd. paid US$5.3 million in a recent auction to secure a northbound Panama Canal transit slot on September 1 for the LPG carrier G. Spirit, breaking the previous record of US$4.6 million set earlier in August.

The Panama Canal Authority said recent auction results reflect stronger short-term demand rather than higher canal tolls. It added that auction prices are determined by factors such as customer urgency, commercial priorities and overall supply and demand.

From September, the canal will further reduce vessel draft limits and daily transit capacity. Daily vessel transits will fall from 35–36 vessels to 34 from September 3, and further to 32 from September 15.

Between May and August, rainfall in the Panama Canal watershed was 34% below historical averages, while water inflows were 44% lower, directly leading to the new restrictions.