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Strait of Hormuz blockade drives up Panama Canal costs

A blockade in the Strait of Hormuz and the war in the Middle East have pushed more vital cargo through the Panama Canal, raising demand and costs for transits.

Published Apr 21, 2026, 5:02 PM EDT | WFMZZ

The war in the Middle East and a blockade in the Strait of Hormuz have increased demand to move vital cargo through the Panama Canal, straining capacity and raising prices. One liquefied natural gas (LNG) carrier paid $4 million to bypass the queue and avoid a wait to transit the canal.