This story falls under bucket D, price and market structure, because Panama Canal congestion is reshaping liquefied petroleum gas transport economics between the United States Gulf Coast and Asia. Wider gas carriers are testing ship transfers and longer routes as crossing delays and booking costs rise.
The Panamax tanker Energia Grandeur is transferring cargo to the Neopanamax tanker Eneos Wisdom off Balboa on the Pacific side of Panama. Both vessels were chartered by TotalEnergies. Traders told Bloomberg that the transfer may allow Energia Grandeur to shuttle gas through the canal while Eneos Wisdom carries it across the Pacific.
Canal officials counted 14 ships waiting without reservations and 115 vessels scheduled to transit. Ships seeking northbound passage without bookings faced waits of up to eight days, compared with as many as four days southbound. Some operators have paid millions of dollars to move ahead in the queue.
The congestion also sent the supertanker Gas Scorpio around South America to load a United States cargo, a route that adds about a month to its voyage. A similar journey occurred in 2023 when low rainfall restricted canal traffic. Drier conditions linked to El Niño have again reduced operating flexibility, raising voyage time and freight exposure for gas traders serving Asian buyers.