Panama Canal Fees Hit $4M Amid Hormuz Disruptions

Panama City, Panama Businesses are paying up to 4 million dollars per vessel for priority passage through the Panama Canal as shipping routes around the Strait of Hormuz become increasingly disrupted by escalating tensions between Iran and the United States, according to the Panama Canal Authority.

The Strait of Hormuz, a vital chokepoint for global oil transport, has seen heightened risks from bombings, missile strikes, and drone attacks in recent weeks, prompting companies to reroute vessels through the Central American waterway. This surge in demand has driven up auction fees for expedited slots, transforming what was once a routine transit into a costly alternative amid broader supply chain pressures.

Under normal operations, ships pay standard tariffs of 300,000 to 400,000 dollars for passage, with optional auctions allowing non-reserved vessels to bid for faster crossings. Previously, these additional fees averaged 250,000 to 300,000 dollars, but they have climbed to around 425,000 dollars on average as competition intensifies. Ricaurte Vásquez, administrator of the Panama Canal Authority, described one extreme case involving a fuel tanker operator that paid an extra 4...