Panama Canal delays worsen
- Shipping congestion at the Panama Canal has increased because of drought restrictions and shifted routes. - Traders report vessels paying steep premiums, including one LNG ship that reportedly paid about $4 million to skip queues. - Higher logistics costs are prioritizing energy cargo over grain, a dynamic that can feed into household food and input prices ( ).
Panama Canal congestion has worsened as drought-era transit limits and wartime route shifts have pushed more tankers through the shortcut. (usnews.com) Traders and reporters say wait times have stretched to multiple days, and Bloomberg and Reuters reported one liquefied gas tanker paid about $4 million to skip the queue. (bloomberg.com) The Panama Canal Authority told Reuters it did not set a $4 million fee, noting auctions reflect temporary market conditions; the authority also said there were 6,288 oceangoing transits in the first half of fiscal 2026 and daily averages of 34 in January and 37 in March. (usnews.com) Shipbrokers and commodity traders say energy cargos are being prioritized over lower‑value grain loads, with Clarkson research and summit speakers warning geopolitics is reshaping trade routes. (admis.com) Reporting and maritime data firms say oil and LNG transits via Panama are near four‑year highs, and some tanker owners have bought priority slots — a practice that increases delays and costs for grain carriers. (bloomberg.com) Higher freight and auction premiums are feeding into wider cost pressures: UNCTAD and the Boston Fed have flagged freight‑rate surges as a contributor to import‑price and consumer‑price risks, and farmers report rising fertilizer and shipping bills. (unctad.org) The canal’s vulnerability traces to the 2023–24 drought, when Gatún Lake lows forced restrictions that cut daily transits and prompted permanent operational changes to conserve water. (eia.gov) Panama Canal officials say auctions are only one way customers secure slots and that their wait‑time metrics can overstate delays, but they acknowledged traffic has risen as buyers reroute away from disrupted Middle East passages. (usnews.com) “The authority said it was continuing to operate reliably despite volatility,” Reuters reported — a status line that shippers and grain buyers will watch closely as premiums, routes and weather forecasts evolve. (usnews.com)
