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Businesses dole out up to $4 million to cross Panama Canal during Strait of Hormuz chokehold
World

Businesses dole out up to $4 million to cross Panama Canal during Strait of Hormuz chokehold

  • By ALMA SOLÍS and MEGAN JANETSKY Associated Press

Businesses have doled out up to $4 million to send ships through the Panama Canal while trying to avoid the Iran war's risks and effective closure of the Strait of Hormuz. Passage through the canal usually comes at a flat rate via reservations. But companies without bookings can pay more to cross through an auction that awards slots to the highest bidder. The average price to cross the canal ranges between $300,000 and $400,000 depending on the vessel. Businesses that wanted earlier crossings previously paid an additional $250,000 to $300,000. In a number of cases recently, companies have paid big money to jump the line. The canal's administrator says one paid an extra $4 million.