Weight of Freight: VLGC troubles to persist through the rainy season at Panama Canal
As draught restrictions ease with the start of a much-awaited rainy season in the Panama Canal, difficulties are likely to persist for very large gas carriers (VLGCs) as other shipping markets move back to the route and escalate competition for transit slots.
Listen to Andres Pacheco, Analyst at the LPG Trading desk for Spain’s Repsol, and Yohanna Pinheiro, LPG Freight Market Reporter, discuss how increased competition to transit the Panama Canal and other market drivers will shape the costs of shipping LPG.
Listen now
Key topics covered
- Competitive advantages of the Panama Canal route in US-Asia routes for VLGCs
- Details of the Panama Canal booking system and slot auction price trends
- Effects of eased restrictions at the canal in heightening competition for slots among other markets
- Weather outlook and possible La Nina effects in the markets
- Long term projects to alleviate transits at Panama Canal
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VLCC rates reach uncharted territory
VLCC rates reach uncharted territory
London, 16 September (Argus) — Key VLCC rates across west Africa, the US Gulf, the Gulf of Oman, Yanbu and the Mideast Gulf have rallied again and extended historic highs this week across key markets. The bellwether Mideast Gulf to China route broke the four-digit threshold for the first time since Argus records began, before rising further to WS1100 ($241.45/t) on 15 September. Rates have jumped as a result of escalations in the US-Iran conflict, with Saudi Aramco shutting down its 7mn b/d East-West crude pipeline following drone attacks originating in Iraq, Riyadh said. This led to disruptions in loadings from the port of Yanbu according to market participants. It also led to fewer owners being willing to transit the area. Vessel transits through the strait of Hormuz fell to eight crossings on 14 September, according to data from maritime security firm Windward. Of those eight vessels, five were inbound crossings on the northern Iranian-controlled corridor and one on the US-assisted southern lane, along the coast of Oman, according to data from Windward. The two remaining trips were outbound, evenly split between the northern and southern lanes. Escalations in the Red Sea also led to increased additional war-risk premium (AWRP) levels following the Houthis' capture of Yemen's Red Sea port of Mocha. Some market participants said that certain insurers are no longer providing cover for Bab el-Mandeb transits. This also contributed to higher rates from Yanbu as owners priced the increase into their offers. This pushed crude demand to the Atlantic and the Gulf of Oman where markets remain more liquid and functional. Crude exports from the Gulf of Oman have almost doubled so far in September, with just under 10pc of total exports being on Suezmaxes, with VLCCs carrying the vast majority. In the US Gulf market, a charterer put a VLCC on subjects for a US Gulf coast-China voyage at $43.25mn lump sum, including $250,000 load-port fees, raising the rate on that route by $4.5mn to that level, also its highest recorded by Argus . By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Saudi East-West oil pipeline shut after attack: Update
Saudi East-West oil pipeline shut after attack: Update
Updates with changes throughout New York, 11 September (Argus) — State-owned Saudi Aramco has shut down its 7mn b/d East-West crude pipeline, Saudi Arabia's primary conduit for exporting crude since the start of the US-Iran war, following drone attacks originating in Iraq, Riyadh said on Friday. The pipeline, which moves crude from Saudi fields near the Mideast Gulf to the Red Sea port of Yanbu, came under multiple attacks on Thursday morning, according to the Saudi energy ministry. Saudi Aramco shut down the pipeline as a precautionary measure, while several people have been injured by the attacks. The attacks likely targeted pumping stations that facilitate the flow of oil in the pipeline. Riyadh did not provide details of damage or a timeline for restoring the pipeline's operations. The Saudi foreign ministry said the attacks originated in Iraq. Riyadh in July had blamed Iran-backed groups in Iraq for drone attacks on oil fields in its eastern and central regions. Saudi Arabia then carried out retaliatory air strikes against Iran-affiliated Iraqi militia installations in Iraq. But Riyadh on Friday clarified that — at Baghdad's request — it is not planning retaliatory attacks on Iraqi soil. Iraq's central government confirmed that the attack originated in Iraq, condemned the unnamed perpetrators and vowed to investigate the attack and to take "legal measures against anyone proven to be involved". A September 2019 drone attack on Saudi Aramco's Abqaiq processing facility also originated in Iraq. In the wake of the US-Israeli attack on Iran on 28 February and the de facto closure of the strait of Hormuz by Iran, Saudi Arabia quickly diverted crude through the East-West pipeline. While the line could not replace all the volumes that moved through the strait before the war, it has helped relieve pressure on global crude markets. A pumping station at the terminus of the pipeline on the Red Sea coast came under direct Iranian missile attack in April, reducing the throughput capacity. The Saudis repaired that damage. But since mid-July, Houthi militants in Yemen have conducted their own attacks. Houthis captured the Red Sea port city of Mocha on Friday , bringing the group closer to the Bab el-Mandeb strait, a key outlet for Saudi oil exports to Asia. By Charlotte Bawol and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Hormuz vessel traffic at 10 Thursday: Windward
Hormuz vessel traffic at 10 Thursday: Windward
New York, 11 September (Argus) — Vessel traffic through the strait of Hormuz fell to a one-week low on Thursday while Iran continues to crack down on shipping in the southern traffic lane. Vessel traffic through the strait of Hormuz on Thursday fell to 10 crossings, with four inbound transits on the southern US-assisted lane and two on the northern Iranian-controlled lane, according to data from vessel tracking firm Windward. The four remaining trips were outbound, with all but one taking place on the southern lane, Windward data shows. This was the lowest daily traffic volume through the strait since 4 September, and was near 7.5pc of levels prior to the joint US-Israeli attacks on Iran that prompted the "closure" of the strait of Hormuz. Iran has stepped up attacks on vessels in the southern lane, including two attacks on Thursday reported by the UK Maritime Trade Organisation. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Trump expects elevated oil prices into November
Trump expects elevated oil prices into November
Washington, 9 September (Argus) — President Donald Trump on Wednesday said that global oil prices are unlikely to stabilize until after the 3 November midterm congressional elections. "Right after the election, oil prices are going to be tumbling downward", Trump told reporters. "It's going to take a little bit longer than the midterms." Trump, since he started the war against Iran more than six months ago, has routinely predicted that the conflict would wrap up quickly because of the supposed destruction of Iran's military potential. But on Wednesday, Trump laid out a new narrative that dispenses with his earlier claims of an imminent Iranian collapse, arguing that Tehran's strategy is taking the US electoral calendar into play. Iran is "desperate to try and affect the election so that we can get a nice, weak group of people in (Congress), and leave them alone and let them have their nuclear weapon," Trump said. But, he added: "The war will end immediately after the election because they can't hold out any longer." Trump was speaking to reporters before leaving Washington to attend an unusual, mid-term Republican party convention in Dallas, Texas, where party members hope to tout efforts to bring down prices for consumers. When the US joined Israel in attacking Iran on 28 February, Republicans envisioned a geopolitical victory abroad and cheaper fuel prices at home, a combination that would put wind at their backs to hold unified control of Congress. But, less than two months before the elections, polls indicate that Democrats are likely to wrest control of at least one chamber, if not both. The turnaround in political fortunes, in part, reflects voter concerns over rising inflation, not least because of higher fuel prices stemming from the Mideast Gulf supply disruption. US retail gasoline prices averaged $4.16/USG in the week ended on 7 September, up by around 40pc from late February. "We'll get them down, for gasoline, below $2 a gallon," Trump said on Wednesday. Trump, who ran for re-election in 2024 on a platform promising to cut US energy prices by half, downplayed voters' concerns about rising fuel prices. "I think it's very easy to explain to Americans," he said. "All you have to do is say, 'Will you let Iran have a nuclear weapon?' And the answer is 'no.'" The US and Iran are locked in a struggle for control of the strait of Hormuz, the critical waterway for Mideast Gulf oil and LNG exports where commercial traffic remains well below pre-war levels. The US-Iran military confrontation has escalated in recent days, with US forces destroying eight Iranian tankers in the Mideast Gulf and the Gulf of Oman since 5 September. The Pentagon cited attempted Iranian missile attacks on US warships as a justification for destroying Iranian tankers. "You're going to see a lot more" attacks on Iranian tankers, Trump said. Iran has responded with attacks on the US military base in Jordan and claimed that it has targeted multiple vessels in and around the strait of Hormuz. Two tankers were struck by unknown projectiles in separate attacks within the Mideast Gulf, maritime security organization UK Maritime Trade Operations reported on Wednesday. Iran's ability to target US warships and commercial vessels passing through Hormuz counters recent US claims of having decisively eliminated Tehran's military threat and of enabling an increase in oil exports through the critical waterway. Crude futures have settled higher in each of the past six sessions dating back to 31 August, with October Nymex WTI trading near $96/bl on Wednesday morning. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

