Japan is urgently seeking alternative sources of crude oil after more than 90 percent of its usual supply was effectively cut off due to the blockade of the Strait of Hormuz.
In response, the country has accelerated efforts to secure imports from the United States, marking a significant strategic shift in its energy sourcing.
This move comes amid a broader surge in demand for American crude across Asia, a trend that has driven up transit costs through the Panama Canal.
The Panama Canal Authority reported on April 23 that fees for certain vessels have soared sharply. The average cost for a last-minute auction slot rose from $135,000–$140,000 (21.5 million–22.3 million yen) before the attacks on Iran to $385,000 in March and April.
In one extreme case, an official disclosed that a tanker paid a record $4 million (approximately 640 million yen) to secure passage after being rerouted from Europe to supply fuel-strapped Singapore. Traffic through the canal has also increased, with daily vessel crossings rising from an average of 34 in January to between 36 and 38 in April.
A report by the Financial Times indicated that at least 29 fuel tankers have altered their routes following the attacks on Iran, with most now heading toward Asian markets. U.S. crude exports, largely shipped from Gulf Coast hubs in Texas and Louisiana, are being redirected via either the longer Atlantic route around the Cape of Good Hope or the shorter but more congested Panama Canal passage.
Although the canal cannot accommodate the largest oil tankers, Asian buyers are opting for smaller, more expensive vessels to expedite deliveries. Despite higher transit fees, the reduced travel time and fuel savings make the route economically viable for these shipments.
Japan’s reliance on these alternative supply lines was underscored on April 26, when the first tanker carrying U.S. crude acquired after the Hormuz disruption arrived in the country. The shipment, secured by Cosmo Energy Holdings Co., was delivered to the Keiyo Sea Berth in Tokyo Bay, a major oil transfer hub.
The cargo consisted of 910,000 barrels of crude—equivalent to roughly 0.3 days of Japan’s domestic consumption. Loaded in Texas on March 22, the tanker traveled across the Pacific Ocean via the Panama Canal before reaching its destination. The oil will be transported through an undersea pipeline to a refinery in Chiba Prefecture for processing into gasoline and other products.
This delivery marks the beginning of a broader diversification strategy. Japan is significantly increasing its imports of U.S. crude, with volumes in May expected to be four times higher than a year earlier. At the same time, the government is sourcing oil from regions outside the Strait of Hormuz, including other parts of the Middle East, Central Asia, Latin America, and the Asia-Pacific.
Alternative suppliers accounted for over 20 percent of Japan’s oil imports in April last year. For May, total imports are projected to reach around 60 percent of the previous year’s level, with plans to expand further in June.
Meanwhile, on April 23, Mexican President Claudia Sheinbaum announced that Mexico would supply 1 million barrels of crude oil following a request from Japan.
To mitigate the immediate supply gap, Japan has also begun tapping into its strategic petroleum reserves. These stockpiles have declined from the equivalent of eight months’ consumption in March to about seven months as of April 21.
