Panama Canal Authority suspends special auctions for certain vessels

The Panama Canal Authority (ACP) has suspended two special auctions for Panamax and Neopanamax vessels from today until 30 September.

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

The value of auctioned slots to transit the congested Panama Canal has surged due to low water levels. In August, one vessel paid a whopping $2.4 million for a transit slot.

However, the ACP says in a notice that booking slots that become available due to cancellations or other reasons during "Booking Period 3" for these vessels will continue to be offered through extraordinary auctions.

Last week, the ACP revoked Booking Condition 3 for its Panamax locks, reinstating "Booking Condition 1A". Under Condition 3, the authority allowed non-booked vessels to pass through the canal to reduce a backlog of vessels in the waterway. This was made possible by cancelling third booking slots.

However, with the implementation of Condition 1A, the third booking slots will be offered again. This means that the ACP's capacity to accommodate non-booked vessels will be reduced, which could increase the backlog again.

By Debarati Bhattacharjee

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