Tanker pays record $5.3 million for priority Panama Canal transit

PANAMA CITY — A tanker carrying liquefied petroleum gas paid $5.3 million for priority passage through the Panama Canal before restrictions tied to El Niño conditions took effect, Canal Deputy Administrator Ilya Espino said. The fee is the highest recorded for a canal transit, according to the authority. Drought linked to El Niño has lowered water levels in the canal's locks, forcing the Panama Canal Authority to cut the number of daily ship transits to conserve water. Vessels seeking priority passage can bid in an auction system, with winning bids reaching several million dollars. The elevated transit costs and longer waiting times have added to expenses across global supply chains, which were already under pressure from higher freight rates. The canal authority has not set a timeline for lifting the restrictions. Officials said the limits could remain in place for several more months and that water levels are being monitored in line with rainfall. No further details on the tanker or its cargo were immediately available.