May. 11 at 8:04 PM
Oil shipments thru the Panama Canal hit a record 1.77Mbpd in April, a +74% surge from the 2025 avg, as the effective closure of the Strait of Hormuz forced Asian nations to replace Middle Eastern crude w/ US Gulf Coast supply
The spike has driven up canal tolls & tanker freight rates, adding an estimated
$3/barrel premium for US-to-Asia voyages compared to pre-crisis Middle East routes. Japan, South Korea, China, & India have all ramped up US crude purchases despite longer transit times of 30 to 35 days
Before the Hormuz crisis, the typical journey for Middle Eastern crude to Northeast Asia took roughly 15-17 days via the Strait of Hormuz & the Indian Ocean
The Panama Canal Authority has maintained its reservation-based transit system and variable toll structure, but the sudden demand spike has pushed spot auction prices for last-minute slots sharply higher. Shipping brokers report that some tanker operators have paid premiums of several hundred thousand dollars above standard tariffs to secure passage without lengthy delays
Asian refiners are absorbing the premium rather than risk running down strategic petroleum reserves or cutting refinery runs
Parallel increase in voyages around the Cape of Good Hope, as some VLCCs are too large to fit thru the canal's locks & must take the longer route around South America - about 47-55 days
IEA has noted in recent assessments that the Hormuz disruption may accelerate long-term trends toward supply chain diversification
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