Asian shipper sets record $5.3M bid for Panama Canal transit slot amid Iran war disruptions

A South Korea-based energy shipper has shattered the Panama Canal transit auction record by paying $5.3 million for a September 1 slot, Bloomberg News reports. SK Gas Ltd. secured the record fee through a canal authority auction this week to move its G. Spirit liquefied petroleum gas (LPG) tanker northbound on the waterway. The previous auction high was $4.6 million, also paid by a South Korean-controlled vessel earlier this month. Demand for urgent canal passages has skyrocketed following disruptions to global trade routes caused by the Iran war, which have rerouted shipments toward Asia. Vessels arriving without reservations now face wait times as long as 11 days, according to Argus Media data. The Panama Canal Authority has responded by tightening slot availability starting in September and reducing maximum cargo loads due to anticipated drought conditions linked to the developing El Niño weather pattern. The canal authority confirmed that most vessels use its reservation booking system, with recent auction prices far exceeding the pre-February median of around $55,000. The authority declined to comment on the record bid. As of August 25, the G. Spirit was positioned on the Pacific side of the canal, according to Bloomberg tracking data. SK Gas did not respond to requests for comment.