Panama Canal News Updates

Demand to urgently pass through the waterway has soared after the Iran war upended global trade routes, particularly to Asia.

Panama’s government in February seized the Balboa and Cristobal ports after its Supreme Court ruled that a concession held by CK Hutchison’s subsidiary to run the two ports was unconstitutional.

The tighter access to the Panama conduit comes as other major global chokepoints have faced disruptions, roiling trade flows.

While passage through the waterway usually comes at a flat rate via reservations, companies without reservations can cross by paying an additional fee.

U.S. oil cargoes transiting the Panama Canal are close to a four-year high as Asian refiners rush to import American crude in lieu of Mideast supplies.

Ships are facing 3½-day delays to enter the Panama Canal as the Iran war sparks a traffic surge, prompting a vessel to pay an extra $4 million to jump the line.

A unit of Hong Kong’s CK Hutchison said that Maersk had undermined a contract over operations of ports at either end of the Panama Canal.

If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, Ricaurte Vásquez said.

Beijing warned of a “heavy price” for the Central American country’s forced takeover of the facility from Hong Kong conglomerate CK Hutchison. 

Panama Ports cites the Central American nation's “illegal state takeover” of the Balboa and Cristobal ports, and challenged a Feb. 23 executive decree it said authorized the seizure of its assets.