Business & Finance
South Korean supertanker pays record $4.6 million to skip Panama Canal queue
A Liquefied Petroleum Gas vessel secured an expedited transit slot as Middle East supply disruptions increase global shipping demand.
The short version
- South Korean supertanker G. Arete paid a record $4.6 million in a Panama Canal Authority auction to bypass a transit backlog that can last up to 11 days.
- The empty vessel was traveling toward the United States to collect a shipment of liquefied petroleum gas destined for East Asia.
- High transit auction prices reflect increased global shipping volatility and demand for U.S. gas alternatives following blockades in the Strait of Hormuz.
Key facts
- The South Korean liquefied petroleum gas supertanker G. Arete paid a record $4.6 million to secure an early transit slot through the Panama Canal.[Jalopnik]
- The G. Arete can carry more than 80,000 cubic meters of liquefied petroleum gas and was empty at the time of the transit.[Jalopnik]
- The Panama Canal Authority operates an auction system alongside its flat-rate reservation system to allow ships to bid for earlier passage during periods of heavy congestion.[Jalopnik]
- Wait times for Neopanamax-sized vessels at the Panama Canal can reach up to 11 days.[Jalopnik]
What remains uncertain
- The exact identity of the party that submitted the winning $4.6 million bid on behalf of the G. Arete was not specified.[Jalopnik]