Panama City: Companies are reportedly paying as much as $4 million per vessel to secure priority passage through the Panama Canal, as escalating tensions have effectively disrupted the Strait of Hormuz, according to the Panama Canal Authority.

Under normal conditions, ships transit the canal at a standard tariff, with optional auction-based slots available for faster crossings. However, with global shipping routes increasingly disrupted by geopolitical instability in the Middle East, demand for expedited canal access has surged sharply.

Industry reports suggest that as the Strait of Hormuz, one of the world’s most critical energy chokepoints has become increasingly volatile amid tensions involving Iran and the United States, shipping firms have rerouted vessels via the Panama Canal, driving up competition for passage.

Ricaurte Vasquez, administrator of the canal, said that in one case a fuel vessel paid an additional $4 million after changing destination mid-voyage due to supply pressures in Europe and Asia. Other oil carriers are also believed to have paid multi-million-dollar premiums to avoid delays linked to global trade disruptions.

Typically, additional auction fees for priority transit range between $250,000 and $300,000, but recent weeks have seen those costs rise to around $425,000, reflecting intense demand for limited slots.

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Rodrigo Noriega, a Panama City-based analyst, said companies are increasingly prioritising safety and speed over cost as global supply chains come under strain. He added that the situation reflects broader disruption in international trade flows driven by ongoing conflict risks.

Panamanian authorities have also highlighted security concerns, including the reported seizure of a Panama-flagged vessel in the Strait of Hormuz, which they described as a serious escalation affecting maritime safety.

Analysts warn that if instability continues, transit costs through the Panama Canal could rise further, alongside volatility in global oil prices, which have already seen significant spikes in recent weeks.