Panama Canal sees major traffic boost as Iran war fears grow
More Ships Are Rerouting Through Panama as Iran Tightens Its Grip on the Strait of Hormuz
Panama Canal – (Web Desk) – The ongoing conflict in the Middle East is sending more ships than ever through the Panama Canal, according to a top canal official speaking on Monday.
The fighting — which broke out on February 28 and has now stretched over a month — has led Iran to effectively shut down the Strait of Hormuz, a critical chokepoint that normally handles around one-fifth of the world’s oil and gas shipments.
Canal deputy administrator Ilya Espino de Marotta shared some surprising numbers in an interview with Telemetro. The canal had originally expected roughly 34 ships passing through each day this year — but lately, that number has jumped to 38, 39, even 40 daily crossings. A notable uptick that reflects just how dramatically global shipping routes are shifting in response to the crisis.
Five percent of global maritime trade passes through the Panama Canal, whose main users are the United States and China. The route primarily connects the east coast of the United States with the Asian giant, South Korea, and Japan.
“The Panama Canal is a safe, short route, that with gas prices” still reduces costs, Espino de Marotta said.
Nonetheless, the canal executive warned that the passage of 40 daily boats “isn’t sustainable” given the limited space on the route.
She added that by April, the canal should see renewed growth in the number of boats carrying liquified natural gas (LNG), after a slump due to Russia’s invasion of Ukraine.
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“We were going over 500 passages a year,” but then it dropped away “because of the war in Ukraine and Russia, though it’s now coming back,” Espino de Marotta said.
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