Panama Canal traffic and fee demand spike as oil is rerouted amid Middle East disruptions

The Panama Canal Authority said on April 28 that war-related disruptions in the Middle East are pushing more ships toward Panama, increasing demand for canal crossings. (reuters.com) Administrator Ricaurte Vásquez said the canal is seeing extra interest from cargoes that would otherwise move on routes tied to the Persian Gulf and the Strait of Hormuz. He said the waterway is operating normally and can absorb some of that traffic. (reuters.com) The immediate pinch point is the booking system. The canal authority said on April 23 that some vessels recently paid more than $1 million in auctions for transit slots, a jump it described as a temporary demand spike rather than a return to drought-era congestion. (reuters.com) Outside reporting has put the highest all-in premium for guaranteed passage even higher. The Philadelphia Inquirer reported that some businesses paid up to $4 million to secure canal access as traders rerouted shipments away from Hormuz risk. (inquirer.com) The canal matters because it is one of the world’s key shortcuts between the Atlantic and Pacific, and it had only recently recovered from the 2023-2024 drought that forced Panama to cap daily transits. The authority said first-half fiscal 2026 traffic reached 6,288 vessel transits, up 5% from a year earlier, with water levels back near normal. (pancanal.com) (msn.com) Panama has been trying to make that recovery more predictable for shippers. In March and April, the canal authority rolled out changes to its reservation system and expanded its long-term slot program, steps meant to give carriers more certainty over transit dates and pricing. (pancanal.com 1) (pancanal.com 2) (pancanal.com 3) A separate political dispute is adding risk for ships that use Panama’s flag. The U.S. Federal Maritime Commission said China sharply increased detentions of Panama-flagged vessels in Chinese ports in March, and Al Jazeera reported on April 29 that nearly 70 ships had been held. (fmc.gov) (aljazeera.com) Panama’s deputy foreign minister, Carlos Hoyos, raised both issues together at the United Nations this week, linking disruptions in Hormuz with the detention of Panama-flagged ships and warning about the effect on trade and energy security. (newsroompanama.com) For now, the canal is open, water levels are favorable, and Panama says the price spike reflects a short burst of demand. But the April auctions show how quickly a shock thousands of miles away can turn a canal slot into a seven-figure commodity. (reuters.com 1) (reuters.com 2)