Panama Canal Traffic Surges, Transit Slot Bidding Prices Soar Past One Million US Dollars
Due to tensions in the Strait of Hormuz and the Iran war, Asian buyers have shifted to US crude oil, causing Panama Canal crude oil and petroleum product traffic to surge over 70% in April, reaching a record high. This has led to transit slot bidding prices soaring past one million US dollars.
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- 📰 Published: May 12, 2026 at 18:01
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TOKYO (CNA) -- With the Strait of Hormuz nearly blockaded, Asian buyers have turned to purchasing US crude oil, leading to a surge of over 70% in Panama Canal crude oil and petroleum product transport volume in April compared to the same period last year. Transit slot bidding prices have also skyrocketed.
According to Nikkei Asia, shipping tracker Kpler reported that the average daily volume of crude oil and petroleum products transported through the Panama Canal in April reached 1.77 million barrels, a 74% increase from the 2025 daily average and a new record since data collection began in 2013. Shipments to Japan, in particular, surged by over five times, reaching 260,000 barrels per day.
Because supertankers typically used for transporting crude oil to Asia cannot pass through the Panama Canal, US crude oil exports to Asia mostly have to bypass the Cape of Good Hope at the southern tip of Africa. Although the journey is longer, it is considered a lower-cost option.
Following the outbreak of the Iran war, Asian countries like Japan and China, which previously relied on Middle Eastern energy, are now rushing to import crude oil from the US to fill supply gaps. They are using smaller and medium-sized tankers that can pass through the Panama Canal for shorter routes. A shipment of crude oil purchased by Japan's Cosmo Energy Holdings was transported via this route and arrived in Japan late last month.
Even under normal circumstances, container ships, car carriers, liquefied petroleum gas (LPG) carriers, and bulk carriers are busy traversing the Panama Canal. As the canal uses a lock system, the number of ships that can pass through daily is limited. With the surge in demand for oil and petroleum product tankers, congestion has become even more severe.
Ships must book transit slots to pass through the canal. Cruise ships and container ships, with fixed schedules, usually book slots in advance. In contrast, many oil tankers currently transporting US crude oil are arranged on short notice and must bid for transit slots.
According to the Panama Canal Authority, between March and April this year, the average bidding price for transit slots soared to approximately $385,000, up from $135,000 to $140,000 before the Iran war. WaterFront Maritime Services, which has an office in Panama, noted a significant increase in transit slots sold for over one million US dollars.
WaterFront stated that due to long queues of ships at both ends of the canal, vessels without pre-booked slots often face long waiting times. Although transiting the Panama Canal can shorten transit time, the unpredictable schedule deters some operators.
Whether it's the cost of purchasing Panama Canal transit slots or the increased shipping costs from bypassing the Cape of Good Hope, the rising expenses for shipping operators will ultimately push up oil and natural gas prices.
In addition to intense competition and policy risks such as potential US export restrictions, the physical limitations of the Panama Canal also present more uncertainties for US oil buyers. (Compiler: Liu Wen-yu) 1150512
According to Nikkei Asia, shipping tracker Kpler reported that the average daily volume of crude oil and petroleum products transported through the Panama Canal in April reached 1.77 million barrels, a 74% increase from the 2025 daily average and a new record since data collection began in 2013. Shipments to Japan, in particular, surged by over five times, reaching 260,000 barrels per day.
Because supertankers typically used for transporting crude oil to Asia cannot pass through the Panama Canal, US crude oil exports to Asia mostly have to bypass the Cape of Good Hope at the southern tip of Africa. Although the journey is longer, it is considered a lower-cost option.
Following the outbreak of the Iran war, Asian countries like Japan and China, which previously relied on Middle Eastern energy, are now rushing to import crude oil from the US to fill supply gaps. They are using smaller and medium-sized tankers that can pass through the Panama Canal for shorter routes. A shipment of crude oil purchased by Japan's Cosmo Energy Holdings was transported via this route and arrived in Japan late last month.
Even under normal circumstances, container ships, car carriers, liquefied petroleum gas (LPG) carriers, and bulk carriers are busy traversing the Panama Canal. As the canal uses a lock system, the number of ships that can pass through daily is limited. With the surge in demand for oil and petroleum product tankers, congestion has become even more severe.
Ships must book transit slots to pass through the canal. Cruise ships and container ships, with fixed schedules, usually book slots in advance. In contrast, many oil tankers currently transporting US crude oil are arranged on short notice and must bid for transit slots.
According to the Panama Canal Authority, between March and April this year, the average bidding price for transit slots soared to approximately $385,000, up from $135,000 to $140,000 before the Iran war. WaterFront Maritime Services, which has an office in Panama, noted a significant increase in transit slots sold for over one million US dollars.
WaterFront stated that due to long queues of ships at both ends of the canal, vessels without pre-booked slots often face long waiting times. Although transiting the Panama Canal can shorten transit time, the unpredictable schedule deters some operators.
Whether it's the cost of purchasing Panama Canal transit slots or the increased shipping costs from bypassing the Cape of Good Hope, the rising expenses for shipping operators will ultimately push up oil and natural gas prices.
In addition to intense competition and policy risks such as potential US export restrictions, the physical limitations of the Panama Canal also present more uncertainties for US oil buyers. (Compiler: Liu Wen-yu) 1150512