Overview
- Average prices for last-minute auction slots have climbed to about $385,000 from roughly $140,000, with some bids over $1 million and one fuel ship paying an extra $4 million to speed its passage.
- Rerouted cargoes that once used the Strait of Hormuz have pushed more container, liquefied petroleum gas and liquefied natural gas traffic through Panama.
- The canal authority says traffic is heavier but flowing, noting most vessels reserve ahead of time and only 3 to 5 auctioned slots are offered each day.
- Panama’s foreign ministry accused Iran on Wednesday of seizing the Panama-flagged MSC Francesca in the Strait of Hormuz, and it was not clear if the ship was still held.
- The shift is reshaping trade patterns and lifting costs for energy buyers and shippers, and canal managers are also monitoring lake levels after recent drought years on a route that carries about 6% of global trade.