Market brief · Economy & rates

Global Shipping Costs Explode as Hormuz Disruptions Hit Key Trade Routes

The Middle East crisis has reverberated through key global shipping chokepoints thousands of miles away from the Strait of Hormuz. Following the crippled tanker traffic through the Middle East’s main oil and LNG export outlet, the Panama Canal and the Suez Canal have seen an increase in energy commodity cargo traffic in the past half year. As a result, shipping costs have soared to record highs, and some vessel operators are willing to pay $4-5 million in an auction to secure a single passage through the Panama Canal on a certain date. Shipping…