SK Gas Pays Record Panama Canal Transit Fee

A single vessel paid a record-high fee of $5.30 million, equivalent to 7.3 billion won, to pass through the Panama Canal on September 1, as reported by Bloomberg on August 26 local time. This surpasses the previous record set by SK Shipping at $4.60 million, only a few weeks prior. The liquefied petroleum gas carrier G. Spirit from SK Gas secured the right to transit northbound through the canal via a successful auction bid.

The surge in transit fees is attributed to geopolitical risks and climate change, including the aftermath of the Iran war causing major trade routes to contract and the El Niño phenomenon leading to severe drought in the Panama region, which lowers freshwater levels necessary for canal operation. The Panama Canal Authority plans to tighten limits on transit slots and vessel load capacity from September.

With shrinking supply and rising demand, auction prices have soared, with SK Gas's winning bid nearly 100 times higher than the average before February. G. Spirit is currently awaiting passage on the Pacific side of the canal. SK Gas has not commented on the auction result. As logistics uncertainty grows, companies are expected to continue shortening canal transit times despite the high costs.