Shipping companies are now paying up to four million dollars to secure priority passage through the Panama Canal, according to the Associated Press. The sharp rise in fees follows the effective shutdown of vessel traffic through the Hormuz Strait, which has disrupted global shipping routes and forced many ships to seek alternative passages.

Normally, the Panama Canal charges fixed rates, but auction prices for priority slots have surged as demand increased. Ships rerouting to avoid the Hormuz Strait are competing for faster transit options to prevent multi-day delays, significantly raising costs.

The situation highlights the broader impact of the Hormuz crisis on global trade and shipping expenses, underscoring how regional disruptions can ripple through international supply chains.