Shipping through the Panama Canal has become dramatically more expensive, with some companies now paying upwards of $1 million for a single transit. The cost surge is being driven by two converging pressures: an effective closure of the Strait of Hormuz that is pushing additional maritime traffic toward the canal, and persistently low water levels that limit how many vessels can pass through.
The combination of redirected trade and reduced capacity is placing intense strain on the waterway, sending transit prices soaring. Shippers are left with fewer affordable route options, and the mounting fees are expected to ripple through global supply chains.