Panama Canal transit auction bids exceed $1 million as demand surges

Some vessels have recently paid more than $1 million at auction to secure transit slots through the Panama Canal, the waterway's authority said on Tuesday, citing shifts in global trade supply and demand.



The Panama Canal Authority said the high bids reflect temporary market fluctuations rather than tariff increases set by the interoceaniccorridor.



The statement follows the authority's announcement last week that it would impose new limits on daily vessel transits, reversing an earlier stance that no further restrictions were planned this year.



In May, the canal authority told Reuters the waterway was not planning passage restrictions in 2026. However, a longer-than-usual El Niño season has since forced a change in strategy.



Under new measures, the canal will cap daily transits at 34 vessels starting September 4 and further reduce that limit to 32 on September 15. Panama has the capacity to handle around 40