Middle East Conflict Blockades Strait of Hormuz, Panama Canal 'Queue-Jumping Fees' Soar
Due to the blockade of the Strait of Hormuz caused by the Middle East conflict, Asian energy companies are increasingly using the Panama Canal. 'Queue-jumping fees' to avoid waiting times have skyrocketed to $4 million.
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- 📰 Published: April 22, 2026 at 21:47
- 🔍 Collected: April 22, 2026 at 22:02 (14 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 14:36 (16h 34m after Collected)
Central News Agency
(CNA, Panama City, 21st, Comprehensive Foreign Dispatch) The conflict in the Middle East is driving up the demand for transporting essential goods through the Panama Canal. Official reports indicate that a vessel carrying liquefied natural gas bid a whopping $4 million to 'jump the queue' to avoid a wait time of up to five days.
According to AFP, since the joint US-Israeli attack on Iran on February 28 led to the blockade of the Strait of Hormuz—a crucial waterway relied upon for one-fifth of the world's oil and gas transport—instances of such 'queue-jumping fees' at the Panama Canal have surged.
According to a report by the Panama Canal Authority, to meet fuel demands, Asian refineries are choosing to buy oil or natural gas from the United States and transport it via the Panama Canal, rather than purchasing from Persian Gulf countries that rely on exports through the Strait of Hormuz.
The Panama Canal Authority stated today in a statement to AFP that the daily average of vessels transiting the canal was 34 in January, reaching 37 in March, and on some days exceeding 40, indicating that the volume of vessel traffic 'remains robust'.
Vessels must book transit slots in advance to pass through the Panama Canal; those without reservations face an average wait of 5 days. However, the canal authority has a bidding mechanism that allows ships to bid for last-minute 'queue-jumping fees'.
The Panama Canal Authority noted that in a recent auction, a liquefied natural gas (LNG) vessel bid $4 million, and in recent weeks, two oil tankers made winning bids exceeding $3 million.
The average winning bid from October last year to February this year was about $130,000, rising to $385,000 in March and April. (Translator: Kao Chao-fen / Editor: Liu Shu-chin) 1150422
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(CNA, Panama City, 21st, Comprehensive Foreign Dispatch) The conflict in the Middle East is driving up the demand for transporting essential goods through the Panama Canal. Official reports indicate that a vessel carrying liquefied natural gas bid a whopping $4 million to 'jump the queue' to avoid a wait time of up to five days.
According to AFP, since the joint US-Israeli attack on Iran on February 28 led to the blockade of the Strait of Hormuz—a crucial waterway relied upon for one-fifth of the world's oil and gas transport—instances of such 'queue-jumping fees' at the Panama Canal have surged.
According to a report by the Panama Canal Authority, to meet fuel demands, Asian refineries are choosing to buy oil or natural gas from the United States and transport it via the Panama Canal, rather than purchasing from Persian Gulf countries that rely on exports through the Strait of Hormuz.
The Panama Canal Authority stated today in a statement to AFP that the daily average of vessels transiting the canal was 34 in January, reaching 37 in March, and on some days exceeding 40, indicating that the volume of vessel traffic 'remains robust'.
Vessels must book transit slots in advance to pass through the Panama Canal; those without reservations face an average wait of 5 days. However, the canal authority has a bidding mechanism that allows ships to bid for last-minute 'queue-jumping fees'.
The Panama Canal Authority noted that in a recent auction, a liquefied natural gas (LNG) vessel bid $4 million, and in recent weeks, two oil tankers made winning bids exceeding $3 million.
The average winning bid from October last year to February this year was about $130,000, rising to $385,000 in March and April. (Translator: Kao Chao-fen / Editor: Liu Shu-chin) 1150422
Choose to stand with the facts; every sponsorship you make is the power to protect freedom of the press.
Download the CNA 'First Hand News' APP to grasp the latest news instantly.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.