A container ship has paid $4 million to skip the line at the Panama Canal, where waiting times are now more than a week. This comes as ships are looking for other routes due to the ongoing conflict in Iran.
The significant amount was paid by the owner of the Seaspan Benefactor, as reported by sources who wished to remain anonymous because the auction details are confidential.
As of Tuesday, Seaspan had not responded to inquiries for comments.
Normally, ships using the canal pay a flat fee through reservations, but the Panama Canal Authority also has an auction system to allow vessels to bypass the regular queue.
Due to the situation in Iran, shipowners are increasingly willing to spend millions to take advantage of this auction system. The Panama Canal connects the Atlantic and Pacific Oceans, and there has been a surge in traffic as companies involved in oil, natural gas, fertilizers, and chemicals, particularly from Asia, search for new routes because of reduced traffic in the Strait of Hormuz and the Bab el-Mandeb.
According to Argus Media, Neopanamax vessels, like those transporting liquefied petroleum gas, liquefied natural gas, crude oil, and refined products, are currently facing a wait of about 10 days, the longest since May for Pacific-to-Atlantic transit.
The $4 million paid by the Seaspan Benefactor to jump to the front of the queue on Monday was more than double the average payment for the previous week, as noted in a document viewed by Bloomberg.
As of Tuesday, shipping data indicated that the vessel was positioned on the Pacific side of the canal, preparing to travel north.
The Panama Canal Authority acknowledged in a statement that the auctions have seen rising costs due to changes in global trade, mentioning that some bids have exceeded $1 million.
However, they declined to comment specifically on the recent $4 million bid or the vessel owner.
Further complicating the situation are maintenance issues at the locks, which are expected to last until September. This maintenance is impacting Neopanamax vessels as well. Additionally, the canal has recently lowered the maximum draft limits for these vessels amid lower-than-expected rainfall linked to the El Niño phenomenon.