Marshall Is. CL YINGDU oil/chemical tanker transits through the Miraflores Locks at the Panama Canal, on the outskirts of Panama City, Panama December 18, 2023. REUTERS/Roberto Cisneros
By Ruth Liao
(Bloomberg) –The cost for shippers to jump ahead of congestion at the Panama Canal has significantly dropped from multimillion-dollar record highs in recent months, as the backlog of vessels to cross has lessened as tankers avoid the canal altogether.
The Panama Canal has reduced its operating daily slots to a third of its usual transit due to ongoing drought conditions exacerbated by El Niño. Losing the freshwater used to operate the canal threatens the country’s drinking-water supply and the dry conditions are expected to last until the start of the rainy season in May or June.
As of Jan. 11, the average auction price for Neopanamax slots, which allow for the largest class of tankers permitted to transit the canal, was $269,000, according to a Panama Canal Authority spokesperson. Vessels carrying liquefied natural gas are included in that class.
Panama-based Francisco Torné of shipping agency Waypoint Port Services said the final auction prices are reduced due to the very low number of bidders for the Neopanamax slots.
Related Article: Maersk to Implement ‘Land Bridge’ to Bypass Drought-Hit Panama Canal
Canal slots had been auctioned as high as nearly $4 million last November. The decreased demand for the slots is due to vessels diverting away from the Panama Canal using alternate routes. In another waterway critical to trade, escalation of security concerns around the Red Sea and Suez Canal has further disrupted global shipping.
© 2024 Bloomberg L.P.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,099 members that receive our newsletter.
Have a news tip? Let us know.
A rapidly intensifying weather system, known as a “bomb cyclone,” has developed off the U.S. West Coast, creating perilous conditions for mariners and coastal communities in the Pacific Northwest. The...
The long-awaited MV Glen Sannox, under construction at Scotland’s Ferguson Marine shipyard, has officially received regulatory approval to carry passengers. The Maritime and Coastguard Agency (MCA) and Lloyd’s Register have issued...
New EU and British sanctions are based on false claims of missile transfers to Russia and are "unjustified," Iran Foreign Ministry spokesperson Esmaeil Baghaei said on Tuesday.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,099 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
