Dr Ricaurte Vásquez Morales, Administrator of the Panama Canal Authority, has signalled that the waterway is positioned to absorb rerouted global shipping as the Strait of Hormuz — the world’s busiest commercial maritime corridor — grinds to a near standstill following US-Israeli strikes on Iran. Since last Friday, only four cargo ships have reportedly successfully transited the Strait, which normally facilitates 20-21 million barrels of oil per day and carries a quarter of the world’s total seaborne oil trade. Mr Morales projected Panama Canal transits could rise to one or two additional sailings per day, against the historical average of three, with the Canal currently handling approximately 2.3 million barrels daily. He flagged rising LNG cargo valuations and surging fuel prices as immediate freight cost concerns. The Canal has sufficient water reserves and maximum draft capacity to accommodate increased traffic, he added. Tariff front-loading had boosted Panama Canal volumes over the past 12 months, as per a report.
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