Strait of Hormuz disruption pushes more traffic through the Panama Canal.
Dubai: The war in the Middle East has sharply increased demand for moving vital cargo through the Panama Canal, with one vessel carrying liquefied natural gas (LNG) reportedly paying $4 million to skip the queue and avoid a delay of up to five days, according to an official report.
The shift follows disruptions linked to conflict involving Iran and the blockade of the Strait of Hormuz, a key corridor for a significant share of global oil and gas exports. As a result, some Asian buyers are sourcing energy supplies from the United States and routing shipments through the canal instead of relying on Gulf producers.
Traffic through the Panama Canal has remained steady, averaging between the mid-30s and more than 40 vessels per day in recent months. While most ships reserve transit slots in advance, last-minute auction prices have surged. Previously averaging around $130,000, bids rose to roughly $385,000 in March and April, with several tankers exceeding $3 million.
Handling about 5 per cent of global maritime trade, the canal continues to play a critical role in connecting major markets, particularly between the United States and Asia, amid changing trade conditions.
