Panama Canal demand surges as ships reroute from Hormuz blockade
Business
With the Strait of Hormuz blocked since late February after U.S.-Israel strikes on Iran, ships are scrambling for new routes.
The Panama Canal is now in huge demand, especially for oil and gas shipments.
Asian buyers are turning to US suppliers, and some vessels are shelling out up to $4 million just to skip long waits at the canal.
Panama Canal fees top $3 million
Because of these tensions, last-minute passage fees through the Panama Canal have skyrocketed, now more than $3 million compared with the usual $130,000 to $385,000.
Traffic has jumped too, with 6,288 ships passing through in the first half of fiscal 2026 (a 3.7% increase).
The canal already handles about 5% of all global shipping, but right now it is more vital than ever as trade routes get shaken up.