Traffic through the Panama Canal has surged as disruptions in the Strait of Hormuz redirect more U.S. energy exports toward Asia. BIMCO says canal transits are up 8% year-over-year and are nearing maximum operating capacity, leading to longer wait times and higher transit slot costs. Increased tanker movements for U.S. crude oil, LNG, and refined products are driving the growth. Shipping markets are also monitoring forecasts for a possible return of El Niño later this year, which could again threaten canal water levels and transit capacity.
