Middle East Closures Push Shipping Toward an Already-Strained Panama Canal

Fighting in the Middle East has effectively closed the Strait of Hormuz and Bab al-Mandab, rerouting vessels toward the Panama Canal. That surge compounds congestion from draft restrictions tied to low Gatun Lake water levels. Ships now wait roughly 10 days to transit. One container vessel reportedly paid about $4 million to skip the queue — more than double the prior week's average bid.