**Tanker Pays Record $5.3 Million for Priority Passage Through Panama Canal Amid El Niño Drought**
*By Greta Ruffino, Euronews World*
Published on 28/08/2026 - 8:19 GMT+2
In a significant development for global maritime trade, a tanker carrying liquefied petroleum gas has set a new record by paying $5.3 million (€4.5 million) for priority transit through the Panama Canal. This payment comes as the canal faces operational challenges due to severe drought conditions linked to the El Niño weather phenomenon.
The record fee was paid by South Korean company SK Gas for the G. Spirit, which is scheduled to transit the canal on September 1, just two days before the Panama Canal Authority implements restrictions on the number of daily transits. These restrictions are a response to the ongoing drought that has severely impacted water reserves essential for the canal's operation.
The Panama Canal, a vital artery for international shipping, is primarily utilized by countries including the United States, China, Japan, Chile, and South Korea. The canal has been experiencing significant water stress, with rainfall deficits reaching up to 60% on the Pacific side of Panama. Currently, 11 watersheds in the region are under strain, prompting the Panamanian government to declare a state of emergency due to the effects of El Niño.
El Niño is characterized by warmer surface temperatures in the central and eastern equatorial Pacific Ocean, which disrupts global weather patterns, affecting rainfall, winds, and atmospheric pressure. Central America is currently grappling with a severe drought exacerbated by this phenomenon.
As a result of the drought, the Panama Canal Authority has announced a reduction in the number of daily transits from 36 to 34 starting September 3, with plans to further decrease this number to 32 later in the month. This follows a previous reduction in 2023, when the daily transit number was cut from 38 to 22 due to low water levels in the lakes that supply the canal.
Typically, ships planning to traverse the canal book their passages well in advance. However, vessels without prior reservations face an average wait time of five days. In urgent situations, last-minute slots can be secured through an auction process. The average price for these auctioned slots between October 2025 and February 2026 was approximately $55,000 (€47,000). In April of this year, a vessel transporting liquefied natural gas paid $4 million (€3.4 million) to bypass the queue, reflecting the heightened demand for expedited shipping amid geopolitical tensions, particularly the war in the Middle East.
The implications of the El Niño phenomenon are expected to intensify in the coming months, with projections indicating that its effects may persist until May 2027. As the Panama Canal plays a crucial role in facilitating around five percent of global maritime trade, the ongoing drought and subsequent transit restrictions could have significant repercussions for international shipping and trade logistics.
As stakeholders in the shipping industry monitor the situation closely, the record payment made by SK Gas underscores the growing urgency and competitive nature of maritime logistics in the face of environmental challenges.