Panama Canal Sees Surge in Traffic Due to Hormuz Blockade

Apr 23, 2026

53 min

Apr 23, 2026 09:31

Strait of Hormuz blockade drives up traffic at Panama Canal

## Increased Canal Traffic

The ongoing conflict in the Middle East has led to a significant increase in traffic through the Panama Canal. This shift is primarily due to the blockade of the Strait of Hormuz, a key passage for global oil and gas exports. As a result, many Asian countries are now sourcing energy from the United States, rerouting shipments through the Panama Canal.

## Rising Transit Fees

The demand to bypass the congested canal has driven up transit fees dramatically. In one instance, a liquefied natural gas (LNG) carrier paid $4 million to avoid a wait of up to five days. Auction prices for last-minute slots have also surged, with bids reaching as high as $385,000 in recent months, compared to a previous average of $130,000.

## Canal's Role in Global Trade

Handling about 5% of the world's maritime trade, the Panama Canal remains a crucial link between major markets, especially between the United States and Asia. Despite the challenges, the canal continues to facilitate steady traffic, averaging between 30 to 40 vessels daily.

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