A company seeking to move cargo through the Panama Canal has secured a passage slot with a record-breaking bid of $5.3 million, according to sources familiar with the matter.

South Korea's SK Gas Ltd agreed to the payment to transit the waterway on September 1st, said the sources, who requested anonymity as the details are confidential. The fee was determined through an auction held by canal authorities this week, surpassing the previous record of $4.6 million set earlier this month by another cargo owner controlling a Korean vessel.

Escalating conflicts in the Middle East have disrupted global trade routes, particularly those heading to Asia, triggering a surge in demand for emergency transits through the Panama Canal. According to Argus Media, vessels arriving at the waterway without a pre-booked slot now face waiting times of up to 17 days.

Compounding the pressure, the Panama Canal Authority has tightened its transit quota restrictions implemented since September, further limiting the cargo volume that ships can carry, citing potential drought conditions in the region.

The successful bid allowed the liquefied petroleum gas carrier "G. Spirit" to proceed northward through the canal. Data shows the vessel was positioned on the Pacific side of the waterway as of Tuesday. The canal authority declined to comment on the record auction price via a spokesperson.

In a statement, the canal operator noted that most vessels utilize its reservation system, while recent auction outcomes reflect "significantly strengthened demand," with winning bids now far exceeding the median auction price of approximately $55,000 seen before February.

The brewing El Nino phenomenon in the Pacific region is another factor driving shippers to bid aggressively for transit slots. El Nino is likely to bring severe drought to Panama, threatening the canal's freshwater levels and navigational capacity.