Panama Canal transit costs rise as El Niño and Iran war disrupt shipping
Shipping costs at the Panama Canal are rising as low water linked to El Niño restricts transit capacity and the Iran war adds pressure to global trade routes.
In short
- Shipping costs at the Panama Canal are rising as low water linked to El Niño restricts transit capacity and the Iran war adds pressure to global trade routes.
Commercial ships using the Panama Canal are facing higher costs as falling water levels and disruption linked to the Iran war strain one of the world’s most important trade routes.
Water levels affected by the 2026 El Niño weather system are expected to reduce the number of available transit slots. The tighter capacity has lengthened queues and increased the value of priority passage.
One container ship reportedly paid about $4 million to move ahead in the queue. The episode underscores how weather conditions and geopolitical conflict can combine to raise logistics costs and disrupt global supply chains.
