BackECONOMY
Strait of Hormuz blockade drives up costs at Panama Canal
The blockade of the Strait of Hormuz amid Middle East conflict has increased demand to move cargo through the Panama Canal. An LNG vessel paid $4 million to skip the line, and auction prices for last-minute transits have risen, reflecting tighter bottlenecks. Canal traffic remained robust in the first half of fiscal 2026, with year-on-year increases.
Why It Matters
Geopolitical disruptions can ripple through global shipping, raising transit costs and reshaping trade patterns, energy flows, and logistics planning worldwide.
Timeline
9 Events
April 21, 2026: LNG vessel bids $4 million to skip the line
April 21, 2026
The Panama Canal Authority said one LNG vessel bid $4 million to skip the line in an auction.
April 2026: 5% of global maritime trade passes through Panama Canal; US and China main users
April 2026
Five percent of global maritime trade passes through the Panama Canal; its main users are the United States and China. The route primarily connects the US East Coast with China, South Korea and Japan.
April 2026: auction prices stay around $385,000
April 2026
Auction prices for last-minute transits rose to about $385,000 in April.
March 2026: first half of FY2026 shows 6,288 ship passages
March 2026
In the first half of the 2026 fiscal year (October to September), the Panama Canal recorded 6,288 ship passages, a year-on-year increase of 3.7%.
March 2026: auction prices rise to about $385,000
March 2026
Auction prices for last-minute transits climbed to about $385,000 in March.
March 2026: canal traffic strengthens
March 2026
The Panama Canal Authority reported the average number of ships transiting per day rose to 37 in March, with some days exceeding 40.
February 28, 2026: attacks on Iran and Strait of Hormuz blockade begin
February 28, 2026
US-Israeli attacks on Iran began, triggering a blockade of the Strait of Hormuz.
February 2026: auction prices for last-minute transits around $130,000 (Oct–Feb period end)
February 2026
Past average auction prices for last-minute transits between October and February stood at around $130,000.
January 2026: canal traffic steady at 34 ships per day
January 2026
The Panama Canal Authority reported the average number of ships transiting the canal per day in January 2026 was 34.