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Panama Canal is getting more expensive. Record price for faster transition
Author:Mariusz Dasiewicz
The Panama Canal is becoming tighter and more expensive. The low water level limits the ability to cross the largest ships, and the Iran War has increased interest in the Atlantic-Pacific route. A record of $4.6 million has just been paid for the faster transit of one of the ships.
In the article
However, this was not an ordinary transit fee. That's what they bid for an extra slot to skip the line. LPG gas tanker The President, flowing without cargo from the Pacific to the Atlantic, so he did not have to wait many days to cross the channel. According to information based on Bloomberg's data, this was the highest publicly recorded price paid in such a system.
It's a lot for the Panama Canal, where the possibility of faster passage has a price for a long time. In August, the average rates achieved at additional venues auctions increased to around $1.1 million, which was more than sixteen times higher than a year ago. In the case of slots for Neopanamax-class ships, prices at recent auctions averaged to around $2.5 million.
There's some irony in the calendar. The Panama Canal celebrated its 112th anniversary for shipping two days ago. August 15, 1914 steamer Ancon was the first to officially pass the canal, opening a trail linking the Atlantic to the Pacific, which quickly became one of the most important routes World maritime trade. Today, just two days after this anniversary, the importance of the Panama Canal is again seen particularly clearly – the movement of ships is increasing and falling water level forces the channel authorities to limit permissible immersion.
The war in Iran increased traffic through the Panama Canal
The cause of greater interest in the Panama Canal should also be sought in the Middle East. Limitation of shipping by Ormuz Strait made customers in Asia begin to increase purchases of oil and oil products in the United States, primarily on the coast Gulfs of Mexico.
In the case of deliveries from there to Asia, one of the shortest routes of the sea leads through the Panama Canal. The increasing traffic can be seen in both container and LPG shipments. By the end of June, the channel operated an average of 35 transits per day, and in the first nine months of the fiscal year their total number was 5.2% higher than the year before.
However, greater interest in transit coincided with a decline in water levels, which began to limit the opportunities of the Panama Canal.
El Niño takes another centimeter from the ships
The Panama Canal is no ordinary dig between two oceans. Its operation depends on the fresh water resources, primarily collected in Lake Gatún. Each passage of a ship requires the use of significant quantities of it, so at the falling water level the canal authorities must introduce restrictions. One of these is to reduce the permissible immersion of the largest ships.
ACP has been preparing for several months for a further fall in water levels. In July, channel authorities reported that the probability of strong El Niño rose to 81 percent. This phenomenon is associated with the seasonal warming of Pacific waters, which disturbs the precipitation system and in this part of Central America can bring long-term periods of drought. In early August, further restrictions on the situation on Lake Gatún were announced. From 26 August maximum permissible dive The largest ships using the Panama Canal will be reduced to 14.63 m and from 3 September to 14.48 m.
At first glance, the difference may seem small. For large container ship is, however, necessary to prohibit less cargo. "Business Puls", citing Drewra's analysis, indicates that in relation to the standard level acceptable dive Neopanamax ships will decrease by about 5%. How much this will translate into the amount of cargo transported depends on the size of the ship. The larger the individual, the more the limitation can be felt.
Sea transport pays for lack of water and war
The situation in Panama shows more than just another record at the auction. At one of the most important points in world maritime transport, there were two independent problems. The Middle East War increased demand for alternative energy supplies and demand for transit through the Panama Canal. At the same time El Niño began to limit the channel's capabilities.
Authorities Panama Canal ensure that the latest immersion restrictions do not reduce the number of daily transits. However, they admit that if water levels continue to fall, further restrictions may be introduced, including on the number of places available.
A record $4.6 million shows how much time may be worth to the shipowner under the current conditions. If a ship flying without cargo is paid to run through a channel a few days earlier for the equivalent of several million PLN, this means that the cost of waiting and risk of delaying subsequent voyages may be as important as the transit price itself.
