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Market Chatter: LPG Tanker Pays Record $4.6 Million to Jump Panama Canal Queue

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An empty liquefied petroleum gas tanker, G. Arete, paid a record $4.6 million in an auction to skip the long queue at the Panama Canal, surpassing the previous record of $4.2 million set earlier this year, Bloomberg reported Friday, citing sources.

Middle Eastern tensions and drought from the El Nino weather phenomenon are hampering global trade routes, resulting in congestion at the canal leading to waits of up to 11 days for some Neopanamax-size vessels without booked transit slots, the report said.

Another container vessel also reportedly paid $4 million last week to skip the line, as some shippers choose the auction process over a typical reservation system that requires a flat fee to transit the waterway. For LPG, the canal is the shortest route between East Asia and the US, a major supplier of the product.

The Panama Canal Authority and G. Arete owner, South Korea's SK Shipping, did not immediately respond to' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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