The average price of daily transit auctions ensuring the rapid passage of ships through the Panama Canal rose to $1.1 million in August. This figure is 16 times higher compared to the corresponding period of last year.
Sea-news.az reports that the logistics crisis and sharp price increase are related to two main factors: the rerouting of passages as a result of the closure of the Strait of Hormuz, and drought caused by climate change.
According to the analytical company Argus, the average price for passage through the canal’s large locks has reached $2.5 million. The price for Neopanamax-type vessels is $3.78 million, while for Panamax-type vessels it is $2.63 million. In August of last year, this figure was only $150,000.
Although shipping companies could previously book passages in advance with a discount, approximately 30% of maritime traffic is currently regulated by the results of live auctions.
The commencement of military operations by the US and Israel against Iran and the closure of the Strait of Hormuz—through which 20% of the world’s oil supply passes—have diverted global cargo flows to the Panama Canal. The El Niño natural phenomenon observed in the Pacific Ocean has caused severe drought in the region. The canal administration has reduced the draft (water immersion depth) limit of ships from the usual 15.2 meters to 14.4 meters until mid-September. This restriction leads to the formation of long vessel queues at the entrance of the canal.
