Mideast Closures Reroute Shipping to a Congested Panama Canal

Fighting has effectively closed the Strait of Hormuz and Bab al-Mandab, rerouting vessels toward the Panama Canal. That surge compounds congestion from draft restrictions — depth limits 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.