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Panama Canal Congestion Forces Gas Tankers Rerouting

Bloomberg Markets •
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Growing congestion at the Panama Canal is forcing some gas tankers into unusual journeys, from a rare detour around South America to the possible emergence of shuttling through the waterway. Two supertankers were recently observed conducting an unusual ship-to-ship transfer off Balboa port on Panama’s Pacific Ocean coast, according to vessel-tracking data, traders and shipbrokers. The process allows one of the tankers to shuttle back and forth through the canal to ensure the steady flow of liquefied petroleum gas to Asian customers, traders said. This adaptive strategy highlights the increasing logistical challenges posed by the bottleneck at one of the world’s most vital trade arteries.

The unusual transfer method involves one tanker offloading its cargo to another vessel, enabling the second ship to repeatedly transit the canal without the delay of full loading and unloading operations. This approach is seen as a workaround to maintain supply chains amid rising vessel traffic and draft restrictions. Traders have noted that such maneuvers, while uncommon, are becoming more frequent as the canal’s capacity is stretched. The situation underscores the broader impact of infrastructure limitations on global energy transport, particularly for regions dependent on consistent LPG deliveries from the Americas to Asia.