Blockage in Hormuz causes companies to spend up to US$4 million on the Panama Canal

Trump orders the US Navy to attack boats that are laying mines in Hormuz Companies spent up to US$4 million to make ships cross the Panama Canal, with the Strait of Hormuz practically closed, according to the Panama Canal Authority, in a move that caused a seismic change in global trade flows. Although passage through the waterway typically occurs for a fixed fee via reservations, companies without reservations can cross by paying an additional fee at auctions for spaces, which are awarded to the highest bidder, rather than waiting days off the coast of Panama City. That value has skyrocketed in recent weeks as Iran and the United States created a bottleneck in the main Strait of Hormuz shipping route and demand for those slots has risen sharply. Ships began to use the Panama Canal more frequently as cargo was rerouted and buyers sought suppliers in other countries to avoid trading through the now risky Middle East route. “With all the bombings, the missiles, the drones… companies are saying it’s safer and cheaper to cross through the Panama Canal,” said Rodrigo Noriega, a lawyer and analyst in Panama City. “All of this is affecting global supply chains.” Aerial view of ship passing through the Panama Canal. REUTERS/Enea Lebrun At the same time, according to Noriega, the Panamanian government is “maximizing how much it can gain from the Panama Canal.” The average price to cross the canal varies between US$300,000 and US$400,000, depending on the vessel. Previously, to obtain an early crossing, companies paid between US$ 250,000 and US$ 300,000 additionally. In recent weeks, this average extra cost has risen to around US$425,000. Ricaurte Vásquez, the canal’s administrator, said another company, which he did not name, paid an extra $4 million when its fuel ship had to change destinations because of ongoing geopolitical tensions. It was a ship transporting fuel to Europe, and it was redirected to Singapore, because Singapore is running out of fuel,” he said. Other oil companies paid more than US$3 million in addition to the crossing fee to speed up the passage in the face of soaring oil prices. Iran releases video of what it says is the seizure of ships in the Strait of Hormuz on April 22, 2026 Reproduction Vásquez said there was no accumulation of ships in the canal, but that the costs reflect last-minute and larger changes “They decide how much they are willing to pay,” said Vásquez. At the same time as it profits more from the new trade movement, the Panamanian government was also hit by the geopolitical crisis. Panamanian-flagged vessel owned by the Italian company MSC Francesca in the Strait of Hormuz. Panama, which has one of the largest naval registries in the world, said the ship was “taken by force” by Iran. It was not yet clear whether the vessel remained in Iranian custody. the government. Noriega said that the amount paid by companies to cross the Panama Canal could increase even more if the conflict continues, as oil prices continue to rise sharply. Brent oil briefly surpassed US$107 this week, compared to around US$66 a year ago.

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