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The disruption of shipping through the Hormuz Strait has pushed traders to reroute cargo through the Panama Canal, lifting the canal’s revenue by about 15%, according to the Panama Canal Authority.
Panama Canal Authority CFO Victor Vial said daily transits have risen by about 20% since the conflict began in late February. Before the disruption, the canal handled about 34 vessels per day; that average has increased to 38, with some days reaching 40–41.
Vial said Asian traders are scrambling for oil, fuels, and bulk commodities such as coal, which are typically shipped from the U.S. Gulf Coast via this route. The resulting demand has driven record rates for canal transit services.
Vial cited a recent example in which a LNG carrier paid $4 million for a transit last month, while most fees remain under $1 million.
He said operating costs have risen, but high cargo volumes and auction prices point to revenue growth of around 10% to 15%.
Financial performance figures provided by the canal authority include:
The volume of oil shipments from the U.S. via the canal to China, Japan, and Korea nearly doubled to about 12–14 crossings per day from around 7 before the conflict.
Vial said the authority expects the increased traffic to persist even if the conflict ends, and that long-term shifts in global trade routes are likely as market participants seek hedging strategies against higher risks tied to reliance on the Middle East.
He added that even after the conflict ends, the number of crude oil shipments using the Panama Canal is unlikely to return to pre-conflict levels.
Vial cautioned that in a volatile market, conditions can change quickly.
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