Panama Canal a Hormuz Alternative: America The impact of the ongoing tension between India and Iran is now clearly visible on the global oil market and maritime trade. Due to this conflict, the prices of crude oil have again crossed $ 105 per barrel. At the same time, due to the American blockade and Iran’s dominance on the Strait of Hormuz, the crisis over oil and gas supply is deepening.
Amidst this global tension, a small country, Panama, seems to be indirectly benefiting. The Panama Canal, which is important for international trade, is now becoming one of the most expensive sea routes, because due to the closure of the Strait of Hormuz, oil and gas ships are turning to the Panama Canal as an alternative route.
How much money is Panama extorting?
The situation is such that competition among ships to pass through the Panama Canal has reached its peak. In many cases, ships have to go through the auction process to get priority passage. According to the report, a tanker has to spend about 4 million dollars i.e. more than Rs 37 crore to get quick passage.
Why are countries choosing Panama?
In fact, about 20 percent of the world’s total oil consumption passes through the Strait of Hormuz. But due to the increasing tension between America and Iran and the closure of this route, shipping companies are now looking for alternative routes. In such a situation, the Panama Canal has emerged as the most important option, where suddenly the movement of ships has increased significantly.
Analysts believe that amidst bombings, missile and drone attacks, shipping companies are considering the Panama Canal as a relatively safe option. However, this is increasing pressure on the global supply chain. Panamanian expert Rodrigo Noriega says that in the current circumstances the Panamanian government is trying to achieve maximum revenue through the canal.
How do ships pass through the canal?
According to reports, a long waiting list of ships has formed at the Panama Canal and an auction system has been implemented for last-minute slots. In this process, the company which bids the highest gets the chance to pass first. Normally, transit through the canal is done at a flat rate by booking in advance, but ships without booking have to pay higher prices.
How much money does the country usually charge?
Normally the cost of passing through the Panama Canal is between 3 to 4 lakh dollars, but in the current situation the additional amount for priority slots has increased manifold. Earlier, for fast-track, one had to pay an additional amount of 2.5 to 3 lakh dollars, now it has increased to 4.25 lakh dollars or more. This additional amount is separate from the regular toll fees.
The Panama Canal Authority says the conflict related to Iran has caused major changes in global trade routes. Demand for canal slots has increased rapidly in recent weeks and auction prices have reached record levels. A large number of commercial ships are passing through here, which have changed their routes to avoid risky areas.
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