US EditionBusinesses dole out up to $4 million to cross Panama Canal during Strait of Hormuz chokehold
Auction prices for unscheduled crossings have reached $4 million as shipping companies reroute around the Strait of Hormuz, the canal authority said.
- Shipping companies are paying up to $4 million to move vessels through the Panama Canal as global trade routes shift.
- Demand for canal access has surged due to disruptions in the Strait of Hormuz, leading to competitive auctions for transit slots.
- Ongoing tensions involving Iran and the United States are rerouting global shipping and altering trade flows.
21 Articles
21 Articles
To avoid Hormuz, the ships transit from Panama: the costs to cross it go up beyond 800 thousand dollars.
Associated Press News
Businesses dole out up to $4 million to cross Panama Canal during Strait of Hormuz chokehold
Businesses have doled out up to $4 million to cross boats through the Panama Canal to dodge ongoing chaos in the Strait of Hormuz, which has created a seismic shift in global trade flows.
This performance has been particularly strong in recent months, with daily averages of 34 ships in January, 37 in March and, more recently, peak days exceeding 40 transits.
Iran war elevates Panama Canal costs
Costs for ships to pass through the Panama Canal have hit record highs as the Iran war imperils global oil shipping. According to data from Argus Media, daily auctions to cross the waterway have drawn five times as many bids than prior to the conflict. There’s also been a surge of US oil and fuel shipments through the canal, primarily coming from the Gulf Coast.
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