Transit fees for ships passing through the Panama Canal have surged sharply amid disruptions in the Strait of Hormuz linked to the conflict in the Middle East and growing demand for alternative shipping routes, AzerNEWS reports, citing Financial Times.
According to the information, the average price paid in daily auctions for access to the canal’s locks has reached around $1.1 million, several times higher than last year.
The newspaper reported that in recent weeks, fees for vessels seeking priority passage through the canal’s main locks have climbed as high as $2.5 million. In some individual auctions, prices reached $3.78 million and $2.63 million, respectively.
The surge in demand has also led to a significant increase in the number of vessels waiting to transit the canal, adding to congestion and putting further pressure on shipping costs.
Previously, shipping companies could book passage through the Panama Canal in advance at a discounted price. Now, about 30% of the traffic is determined by the auction results.
Another factor is the abnormal warming of parts of the Pacific Ocean, a phenomenon known as El Niño, which can cause drought in certain regions. According to Argus, falling water levels in the Panama Canal are expected to persist as a result of El Niño, potentially putting further pressure on shipping capacity and transit costs.