Companies have paid out up to $4 million for last-minute passage of their vessels through the Panama Canal in recent weeks to cope with the effective closure of the Strait of Hormuz, The Associated Press (AP) news agency reports according to Al Jazeera, citing canal authorities.
The canal usually charges a flat rate for passage, but companies without a booking can pay extra in an auction to avoid waiting for several days to transit through the waterway.
With the Strait of Hormuz blocked, the AP reports that demand for these auctioned slots has skyrocketed, raising the going price, as commercial vessels increasingly use the Panama Canal.
