Panama Canal Fees Surge as Shipping Reroutes From Middle East

Some companies are paying as much as $4 million to secure passage through the Panama Canal amid disruptions to global shipping routes, CBS News reported.

The Panama Canal is seen as an effective reroute.

Typically, ships reserve transit slots in advance at fixed rates.

However, vessels without reservations can bid for limited slots through an auction system, often paying significantly higher fees to avoid long delays off the coast of Panama.

Prices have surged in recent weeks as instability in the Middle East, particularly around key shipping routes, has forced companies to reroute cargo.

“With ongoing conflict, companies are concluding it is safer and, in some cases, more cost-effective to reroute through the Panama Canal,” said Rodrigo Noriega, a lawyer and analyst based in Panama City.

“All of this is affecting global supply chains.”