HomeTopicsLatin AmericaPanama Canal Traffic Increases Amid Iran War and Hormuz Blockade

Panama Canal Traffic Increases Amid Iran War and Hormuz Blockade

The war in the Middle East has prompted more ships to use the Panama Canal, a senior executive for the interoceanic waterway said Monday. Deputy administrator Ilya Espino de Marotta said that daily transits have risen sharply in recent weeks as shippers adjust to disruptions elsewhere.

The month-long conflict began Feb. 28 and has seen Iran effectively blockade the Strait of Hormuz, through which about one-fifth of global oil and gas exports normally pass. “We had expected around 34 daily passages for this year, but in the last two weeks we’ve been having 38, 39, 40,” Espino de Marotta said.

About 5 percent of global maritime trade passes through the Panama Canal. Its main users are the United States and China. The route primarily connects the east coast of the United States with Asia, South Korea and Japan. Espino de Marotta described the waterway as a safe, short option that delivers better economies of scale even with current fuel prices.

She warned, however, that 40 daily transits push the limits of the canal’s infrastructure. The deputy administrator said the canal should see renewed growth in liquefied natural gas carriers by April. LNG passages had topped 500 a year before Russia’s invasion of Ukraine caused a sharp drop. The numbers have started to recover.

“We were going over 500 passages a year, but then it dropped away because of the war in Ukraine and Russia, though it’s now coming back,” Espino de Marotta said. The increase amounts to roughly 10 percent above planned level’s for this time of year. Canal operators have managed the extra volume so far while continuing routine maintenance and monitoring water levels.

Officials have not said how long the elevated traffic will last. They continue to work day by day to support the maritime industry amid the shifting global routes. The surge reflects how the Panama Canal serves as an alternative when key passages in other regions face restrictions. Shippers have turned to the waterway for certain cargoes, especially as fuel costs rise and traditional paths become less viable.

Espino de Marotta’s comments come as the Panama Canal Authority keeps operations stable near its practical daily limits of around 36 to 38 transits under normal conditions. The current pace exceeds those figures but remains manageable in the short term. No changes to tolls or scheduling have been announced. The authority has focused on maintaining predictable service for customers during the period of heightened demand.

The situation shows the canal’s ongoing role in global supply chains, particularly for energy shipments between the Americas and Asia.

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