Panama's Canal, one of the world's most strategic maritime passages, reduced its operational capacity after drought caused by El Niño. Daily ship traffic dropped from 36 to 32 units, with the allowed draft reduced. This measure affects 3% of global maritime traffic. The crisis in the Red Sea, where over 120 ships crossed daily before the war, now limits traffic to four due to the conflict between the U.S., Israel, and Iran. The Houthi threat forces shipping companies to detour around Africa via the Cape of Good Hope, increasing time and costs. Oil tanker freight rates reach $148,000 daily, a 150% increase from 2025, while a container costs 140% more since the war in Iran began. China, meanwhile, operates an Arctic route that cuts travel time by 50% compared to the Suez Canal route. The combination of factors is causing a crisis in maritime trade, with record prices and alternative routes seeking to mitigate the impact.
Opinion
Panama and the Red Sea Halt Global Maritime Trade
Panama's Canal, Ormuz, and the Red Sea face restrictions that are driving up maritime trade costs. Drought in Panama, war in the Red Sea, and Houthi threats reduce ship traffic. Freight rates have risen 150%, with China exploring alternative routes.
