Panama Canal ship pays record $4m to skip queue amid Iran war, El Niño

The container ship Seaspan Benefactor paid roughly $4 million on August 12, 2026 to jump the queue at the Panama Canal, more than double the average auction bid of the prior seven days, Bloomberg reported.

As of August 12, ships were waiting about 10 days to transit the Panama Canal, the longest backlog since May, Argus Media reported. The Panama Canal Authority (ACP) runs daily auctions where shipowners bid to skip the line; starting bids begin at roughly $15,000 for smaller cargo vessels and $55,000 for the largest ships. The waterway, which links the Pacific and Atlantic, is favored by shippers because it cuts costs and transit times, especially for large retailers and energy companies trading between Asia and the US.

Disruption stems from the Iran war, which has effectively closed the Strait of Hormuz and the Bab al-Mandab, and from an intense El Niño that is lowering water levels in the canal. Prices for the busiest shipping lanes have reached record highs, the Financial Times reported.

In early August 2026, the ACP announced draft limits for late August and early September to keep traffic flowing. The authority had already cut the maximum authorized draft in July for ships transiting the Neopanamax locks, forcing them to carry lighter cargoes. Gatun Lake water levels and projections prompted the decisions, the ACP said, adding it was ready to implement preventive measures during El Niño based on lessons from 2023–24.

Some shipowners fear the ACP could restrict the number of vessels allowed to transit, as it did during a lengthy drought in 2023 that created a logjam. From October 2025 to June 2026, canal transits increased 5%, averaging 35 a day, driven by container ships and liquefied petroleum gas carriers.

Low water is also snarling other trade routes. A prolonged dry spell in Europe has sent Rhine water levels to record lows, forcing traders to use costlier road and rail transport.