Panama Canal Administrator Ricaurte Vásquez told foreign journalists that the waterway is not speculating on transit prices despite a surge in demand caused by the blockade of the Strait of Hormuz. Nine out of 10 vessels book their crossings in advance through the reservation system. The remaining slots go to the highest bidder in daily auctions that predate the current Middle East conflict.
Vásquez said the high bids reflect urgent rerouting decisions by shipping companies, not any change in canal policy. “The decision is ours only to make the slot available,” he said. “The level of payment is decided by the market.”
The comments come as the effective closure of the Strait of Hormuz — through which roughly one-fifth of the world’s oil flowed before the war — has forced tankers and gas carriers onto longer alternative routes, many of them passing through Panama. The conflict erupted February 28 when the United States and Israel attacked Iran.
Tanker traffic through the canal has risen sharply since then. One liquefied petroleum gas vessel recently paid $4 million in an auction to secure a same-day slot after its cargo was redirected from Europe to Singapore. Vásquez described the payment as exceptional and tied to immediate contract deadlines rather than routine operations.
Auction prices have climbed. The average bid rose from about $135,000 before the conflict to roughly $385,000 in March and April. Base tolls have not increased. Daily transits have climbed from an average of 34 vessels in January to 37 in March, with peaks reaching 41 ships on some days. As many as 50 vessels arrive daily seeking passage. The canal’s sustainable capacity stands at about 36 ships per day under current rainfall and water-availability conditions.
Vásquez stressed that the canal is operating without congestion. “We are not speculating here,” he said. “That transparency is what gives the Panama Canal the reputation it has.” The surge stems from rerouted hydrocarbons moving from the U.S. Gulf of Mexico to Asian markets that once relied on Middle East supplies. Liquefied natural gas and petroleum gas carriers have posted some of the strongest gains.
Water levels in Gatún and Alhajuela lakes remain at maximum capacity thanks to heavy recent rainfall. Officials have already begun preventive conservation measures in case El Niño returns later this year and tightens supply during the next dry season. Vásquez said future traffic levels will depend on how long the Hormuz blockade lasts and how global trade patterns adjust. For now, the canal continues to handle the extra volume through its existing reservation and auction system.
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