Panama Canal Restrictions And Charter Party Implications

Since commencement of the military operations in Iran in February of 2026, the issue of maritime shipping chokepoints has dominated headlines, with the focus on the Strait of Hormuz and Bab el-Mandeb Strait, linking the Persian Gulf and Red Sea (respectively) to the Indian Ocean and global shipping lanes more broadly. Even before this, the Federal Maritime Commission initiated a broad-based fact-finding proceeding entitled “Investigation Into Transit Constraints at International Maritime Chokepoints,” focusing on seven key straits/passages with an outsized effect on global oceangoing trade: the Northern Sea Passage, the English Channel, the Malacca Strait, the Singapore Strait, the Strait of Gibraltar, the Panama Canal, and the Suez Canal.