Commercial ships navigating the Panama Canal are encountering higher costs due to disruptions from the Iran war and reduced water levels, which are attributed to this year's intense El Niño weather system.
A container ship reportedly paid about $4m (£3m) to skip a queue of vessels waiting to pass through the waterway. This payment was reportedly more than double the average bid from the previous seven days, with Bloomberg identifying the vessel as the Seaspan Benefactor.
According to Argus Media, ships are now facing approximately 10-day waits to transit the route, marking the largest backlog since May. The Panama Canal Authority (ACP) manages daily auctions where shipowners can bid to bypass queues, with starting bids ranging from $15,000 to $55,000.
The ACP announced earlier this month that it would implement limits on a ship's draft in late August and early September to maintain traffic flow. This follows a July measure that reduced the maximum authorised draft for ships using the Neopanamax locks, requiring them to carry lighter cargoes.
The ACP stated these decisions are based on water levels and projected conditions for Gatun Lake, an artificial reservoir feeding the canal. Some shipowners are concerned the ACP might introduce restrictions on the number of vessels allowed to transit, similar to a logjam experienced in 2023.