SK Gas paid $5.3 million to skip Panama Canal line
Business
SK Gas, a South Korean company, just dropped a record $5.3 million to skip the line at the Panama Canal, all because water shortages are making canal slots super scarce.
The payment happened right before the canal cut back on daily ship crossings due to an ongoing drought caused by El Nino.
Panama declares emergency over El Nino
Central America's drought has left water levels in the canal way lower than usual, so ships without a reservation are stuck waiting, averaging five days to get through.
With everyone scrambling for a spot, auction prices have skyrocketed (the previous payment was $4 million in April), and Panama on Tuesday became the latest Central American country to declare an emergency over El Nino.