3 weeks ago

Ship Pays Record $4 Million to Skip Panama Canal Queue

Ship Pays Record $4 Million to Skip Panama Canal Queue
Panama Canal fees surge; container ship shells out $4 million to jump queue · wionews.com

Big ships carry food, toys, and fuel across the oceans.

Many of them go through the Panama Canal, a water road that lets ships cross quickly between two big oceans.

Lately, that road is very crowded, and ships have to wait about ten days for their turn.

One very big ship paid four million dollars just to go ahead of the other ships.

That is like paying a huge amount of money to skip a very long line.

The trouble is happening for two reasons.

A war far away has closed some other sea routes, so more ships want to use the Panama Canal.

Also, dry weather has made the water in the canal lower, so the canal will soon limit how deep ships can sit in the water.

Even rivers in Europe, like the Rhine, are running low, which makes moving goods harder.

All of this can make the things we buy more expensive.

Key facts

Record queue-jumping fee
$4 million (near-record auction price)
Vessel
Seaspan Benefactor, a 10,100 TEU container ship
Current wait time
About 10 days to pass through the canal
Auction starting bids
About $15,000 for small vessels; $55,000 for the largest ships
Planned draft limits
Late August and early September
Disruption causes
Iran war closing the Strait of Hormuz and Bab al-Mandab; El Niño-driven low water levels
Related impact
Record low water levels on the Rhine in Europe; some cargo shipments cannot be booked

Sources

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