A shipper has paid nearly $4 million to jump to the front of the line at the congested Panama Canal waterway, a record high.
Japan’s Eneos Group paid $3.975 million in an auction Wednesday to secure the crossing, bidding documents show. That comes on top of the regular transit fees companies pay, which can be hundreds of thousands of dollars more.
“You are getting close to $4.5 million to use the canal, so that is pricing out a lot of ships,” Oystein Kalleklev, chief executive officer of Flex LNG Ltd. and Avance Gas Holding Ltd., said during a conference call Wednesday when asked about the state of the canal.
Eneos’ shipping division transports various commodities, including crude oil, liquefied petroleum gas, chemicals and bulk cargo. Eneos and the Panama Canal Authority didn’t respond to a request for comment.
A queue of ships waiting to use the canal has been growing in recent months amid a deep drought. To manage the situation, the canal’s managing authority has announced increasingly drastic restrictions for the depleted thoroughfare. The Panama Canal Authority also holds auctions for those wishing to jump to the front of the line.
Whatcha carrying that you can waste 4 million…
Soon to be outdone by Disneys fastpass
These theme park fast passes are getting out of hand.
Everyone buys the fast pass and then for another 4m you can get the premium fast past.
The underlying problem here is global warming. In a part of the world where rain is an almost everyday occurrence, Panama is experiencing drought conditions unheard of previously. The fresh water lake that the canal empties into is too low to support the traffic.
This is very bad news for everyone involved and is not expected to improve any time in the next few years.
The fees get passed on to the consumer 🙂
That original idea of putting a canal through Nicaragua might be looking more tempting to some folks…except for the volcanos.
Yooo they put the Disney fast pass in the canal?
These fast passes are getting out of hand.
Panama is playing with fire here…or water? China has already been trying to build one in Nicaragua. As soon as they can figure out the fresh water lake ecosystem issue to appease ecotourists, they’re building and Panama is going to really screw their economy. The Nicaraguan canal will save ships months or travel and fuel, probably cheaper initially to draw ships away from the Panama canal, etc. Its been shelved since the Hong Kong outfit closed its doors, but with these issues, talks are on the table again.
$4 million has got to make the long way around look mighty enticing. If prices remain that high for long, it’ll be cheaper to build more ships to go around South America to keep throughput high than it will be to cross at Panama.
What if now every major shipping company pays the 4 million? Are they going to set up a queue for ships that paid?
How big of a ship do you need to get a place in line? I wonder if there is a market for just waiting in the queue and then letting people pay to take your spot. Then you go back to the end of the line and once you get to the front you sell your spot again.
Ahh shit man, I only got $399,999,999.99 😔 I can’t pass through
Back to taking the cape horn route like real men.
Canal is drying up
This is the real reason for the war. Move the population to dig the trench.
Considering it costs a million to cross anyway….
This is just to start the narrative when they start planning the canal by gaza that it looks like a “helpful for humanity” thing.
First the Panama Papers and now this!
Did they steal the model from Disney land or other way round?
This is what monopoly causes. Always.
We need second canal so two compete with each other with prices. But who and where it could be build?
Say someone in a dingy floats out there waiting in line, how long is the cue and how would they sell their spot?
Asking for a friend.
I’m so thankful Carter gave Panama the canal. Now no one can blame the US for this.
A lot of paper rolls for food and medical cartons come thru. Who are these extra costs or wait times going to fall on?
“Have you sold many of these priority passes today?” -asks excitedly-
“Oh yes! We sold it to every passenger on the plane.”
29 comments
A shipper has paid nearly $4 million to jump to the front of the line at the congested Panama Canal waterway, a record high.
Japan’s Eneos Group paid $3.975 million in an auction Wednesday to secure the crossing, bidding documents show. That comes on top of the regular transit fees companies pay, which can be hundreds of thousands of dollars more.
“You are getting close to $4.5 million to use the canal, so that is pricing out a lot of ships,” Oystein Kalleklev, chief executive officer of Flex LNG Ltd. and Avance Gas Holding Ltd., said during a conference call Wednesday when asked about the state of the canal.
Eneos’ shipping division transports various commodities, including crude oil, liquefied petroleum gas, chemicals and bulk cargo. Eneos and the Panama Canal Authority didn’t respond to a request for comment.
A queue of ships waiting to use the canal has been growing in recent months amid a deep drought. To manage the situation, the canal’s managing authority has announced increasingly drastic restrictions for the depleted thoroughfare. The Panama Canal Authority also holds auctions for those wishing to jump to the front of the line.
Whatcha carrying that you can waste 4 million…
Soon to be outdone by Disneys fastpass
These theme park fast passes are getting out of hand.
Everyone buys the fast pass and then for another 4m you can get the premium fast past.
The underlying problem here is global warming. In a part of the world where rain is an almost everyday occurrence, Panama is experiencing drought conditions unheard of previously. The fresh water lake that the canal empties into is too low to support the traffic.
This is very bad news for everyone involved and is not expected to improve any time in the next few years.
The fees get passed on to the consumer 🙂
That original idea of putting a canal through Nicaragua might be looking more tempting to some folks…except for the volcanos.
Yooo they put the Disney fast pass in the canal?
These fast passes are getting out of hand.
Panama is playing with fire here…or water? China has already been trying to build one in Nicaragua. As soon as they can figure out the fresh water lake ecosystem issue to appease ecotourists, they’re building and Panama is going to really screw their economy. The Nicaraguan canal will save ships months or travel and fuel, probably cheaper initially to draw ships away from the Panama canal, etc. Its been shelved since the Hong Kong outfit closed its doors, but with these issues, talks are on the table again.
$4 million has got to make the long way around look mighty enticing. If prices remain that high for long, it’ll be cheaper to build more ships to go around South America to keep throughput high than it will be to cross at Panama.
Meanwhile the [Hondurans’ mouths are watering at the idea of building a canal of their own again](https://www.hellenicshippingnews.com/honduras-plans-dry-canal-to-link-oceans/)… That’s just how bad this situation’s gotten…
Canal fast pass
What if now every major shipping company pays the 4 million? Are they going to set up a queue for ships that paid?
How big of a ship do you need to get a place in line? I wonder if there is a market for just waiting in the queue and then letting people pay to take your spot. Then you go back to the end of the line and once you get to the front you sell your spot again.
Ahh shit man, I only got $399,999,999.99 😔 I can’t pass through
Back to taking the cape horn route like real men.
Canal is drying up
This is the real reason for the war. Move the population to dig the trench.
Considering it costs a million to cross anyway….
This is just to start the narrative when they start planning the canal by gaza that it looks like a “helpful for humanity” thing.
First the Panama Papers and now this!
Did they steal the model from Disney land or other way round?
This is what monopoly causes. Always.
We need second canal so two compete with each other with prices. But who and where it could be build?
Say someone in a dingy floats out there waiting in line, how long is the cue and how would they sell their spot?
Asking for a friend.
I’m so thankful Carter gave Panama the canal. Now no one can blame the US for this.
A lot of paper rolls for food and medical cartons come thru. Who are these extra costs or wait times going to fall on?
“Have you sold many of these priority passes today?” -asks excitedly-
“Oh yes! We sold it to every passenger on the plane.”
Damn, they’re getting Canal Fucked