Panama Canal congestion is forcing some liquefied petroleum gas (LPG) carriers
to take atypical routes — including rare sailings around South America — or to
perform ship-to-ship transfers near Balboa on the Pacific side. Vessel-tracking
shows two ultra-large oil tankers recently conducted an STS operation off
Balboa; traders and brokers said this allows one ship to shuttle through the
canal to sustain LPG supplies to Asian customers. Argus Media reports queue
times have reached up to 19 days, the longest since 2022; some operators are
paying millions of dollars to jump the line. Increased rerouting via the canal
has been driven in part by the Iran war, while El Nifio-linked drought has cut
water levels and prompted authorities to tighten limits on vessel cargo loads
and daily transits.
