Increased Congestion in the Panama Canal: $4 Million Passage

The conflicts in the Middle East and the drop in water levels caused by El Nino have led to a series of changes in the Panama Canal. Ships are forced to wait around 10 days to pass through this vital waterway connecting the Pacific and Atlantic Oceans. According to the Panama Canal Authority, shipowners can reserve a passage for a certain fee, as well as bid for an earlier passage. Bids for small cargo ships start at around $15,000, while the largest ships start at $55,000. When congestion or demand increases, the amounts paid can reach much higher levels. In fact, a container ship with a capacity of around 10,000 standard containers paid approximately $4 million for an earlier passage. This situation leads shipowners to bid higher in auctions to avoid the costs of waiting for a long time.