Charges for the busiest shipping lanes in the Panama Canal have hit a record high, as Asian buyers desperate for oil and gas upend global shipping routes upended by the Iran war.
Daily auctions for transit lanes in the waterway have attracted five times as many bids compared to pre-conflict levels, with auction prices for the most commonly used Panamax locks in the canal averaging $837,500, according to data compiled by Argus Media.
The Iran war has created one of the largest energy supply shocks in history, decimating production across the Gulf and throttling supply to refiners in Asia. Global shipping and energy markets have been disrupted by the Strait of Hormuz closure, resulting in an increase in cargo diversions and rising freight costs.