Panama Canal Authority introduces special auction slot for vessels amid drought

The Panama Canal Authority (ACP) has introduced a temporary measure to offer one special auction slot for vessels waiting to pass through the waterway.

PHOTO: Port of Balboa at Panama's Pacific Ocean side. Getty Images

The special auction offers ships that have been waiting for a long duration to pay a one-time fee to skip the long queue. The initiative benefits both Regular and Panamax vessels that have been in the transit queue for at least 10 days, providing them with an opportunity to participate in the auction and expedite their transit through the Panamax locks.

"The purpose of this measure is to provide greater opportunity of obtaining a slot for vessels in the Panamax Locks that have been waiting in the transit queue for an extended period," the canal authority said in a statement.

The number of vessels waiting without reservations has increased to 68 from around 60 at the beginning of the month. Those vessels without reservations may experience indefinite delays, ACP said in its latest advisory.

Last month, ACP reduced the daily ship transits from 32 to 24, and will be applicable until 1 February due to the drought.

The region is experiencing record-low rainfall, resulting in unprecedented low water levels in Gatun Lake. The 430 square kilometres of Gatun Lake form a majority of the Panama Canal. By February, daily transit slots might drop to half of the waterway's typical capacity, ACP said.

Due to measures taken to combat low water levels, there are fewer daily transits, resulting in a long queue of vessels. The first special auction was held last Saturday, with the initial bid starting at $55,000.

By Debarati Bhattacharjee

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