Weight of Freight: VLGC troubles to persist through the rainy season at Panama Canal
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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US seizes fifth Venezuela-linked tanker: Update
US seizes fifth Venezuela-linked tanker: Update
Updates to include destination of seized tanker. London, 9 January (Argus) — The US seized the sanctioned Aframax tanker Olina while it was sailing in the Caribbean carrying Venezuelan crude earlier on Friday, marking the fifth confirmed seizure in recent months. The 113,782 dwt Olina , flagged to Timor Leste according to the IMO database, was apprehended in the Caribbean Sea on 9 January, the US Southern Command said. "In a pre-dawn action, Marines and Sailors from Joint Task Force Southern Spear, in coordination with the Department of Homeland Security, launched from the USS Gerald R. Ford and apprehended the tanker Olina in the Caribbean Sea without incident," the command said. The Olina was sanctioned by the US under the name Minerva M in October 2025, by the EU in May 2025 and by the UK in December 2024 for carrying Russian oil. The vessel's registered owner is Tantye Peur, Hong Kong, according to the IMO database. The tanker last called at Russia in September 2024, when it loaded dirty products from Taman, Kpler data show. In 2025, the vessel was mostly involved in Venezuelan voyages, according to Kpler. This is the fifth confirmed tanker seizure by the US in recent months. The US Coast Guard seized two vessels in December after President Donald Trump declared a partial oil blockade of Venezuela targeting tankers under US sanctions. It later seized the Marinera and M Sophia on 7 January. Heading back to Venezuela The Olina is being sent back to Venezuela,US president Donald Trump said in a social media post Friday. The oil on the ship will eventually be sold as part of an agreement Trump said the US reached with Venezuela to sell up to 50mn bls of crude to US buyers. The Olina' s return to Venezuela marks a departure from the administration's prior practices, which had been to bring seized vessels back to US ports. The first two vessels seized by US forces, the Centuries and Skipper very large crude carriers, have been posted off the coast of Houston, Texas, since they arrived back in the US, according to vessel tracking data from Kpler. The cargo onboard those vessels may be difficult to unload due to the commercial implications of engaging in trade with ship still under US sanctions, according to a shipbroker. By Andrey Telegin and Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Venezuelan crude flows starting to shift
Venezuelan crude flows starting to shift
New York, 9 January (Argus) — The US blockade on sanctioned tankers in and out of Venezuela is impeding the country's shadow fleet loadings, which had primarily gone to China, while changing US restrictions on the country's crude sales are set to lift US imports. Since the US' capture of Venezuelan president Nicolas Maduro, it does not appear any shadow fleet tankers have loaded in Venezuela, according to ship research firm TankerTrackers.com. This indicates that the US action against such vessels — including the seizure of a 5th tanker in the Caribbean earlier today — is discouraging illicit activity out of Venezuela. Prior to the US blockade China had been importing about 430,000 b/d of Venezuelan crude, Argus surveys indicate. US president Donald Trump's statement that up to 50mn bl of Venezuelan crude will be delivered directly into the US Gulf formalizes a rapid redirection of flows away from the dark fleet ships previously bound for China, according to tanker shipbroker Odin. The move will likely heighten Chinese demand for Iranian and Russian grades of crude where supply remains ample and pricing competitive, Odin said. The US seized two tankers on 7 January: the Russian-flagged Marinera , which previously went by other names, was seized off of the coast of Ireland; and the M Sophia , which was part of the flotilla of 16 tankers that defied the US blockade previously . The US seized the VLCC Skipper in early December , and another tanker , Centuries , lat er i n the month. Chevron continues to load crude Two Chevron-operated tankers carrying Venezuelan crude are set to arrive in Texas mid-January after loading in Jose Terminal and departing the country on 7 January, vessel tracking data shows. The Mediterranean Voyager , laden with an estimated 443,000 bl of Hamaca, and the LR2 Nave Photo, laden with an estimated 158,800 bl of Merey crude, both loaded in Jose Terminal on 5 January, departed from Venezuela on 7 January and are set to arrive in Freeport, Texas, on 15 January, according to Vortexa. The Mediterranean Voyager has a documented history of engaging in Chevron-linked Venezuelan crude transport to US Gulf refineries built to process heavy grades . Chevron lost its license to import Venezuelan crude in May 2025, but it was reinstated in August , at which point the company slowly resumed its imports. Chevron is currently the only US producer operating a joint venture with Venezuela's state owned PdV. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US seizes fifth Venezuela-linked tanker
US seizes fifth Venezuela-linked tanker
London, 9 January (Argus) — The US seized the sanctioned Aframax tanker Olina while it was sailing in the Caribbean carrying Venezuelan crude earlier on Friday, marking the fifth confirmed seizure in recent months. The 113,782 dwt Olina , flagged to Timor Leste according to the IMO database, was apprehended in the Caribbean Sea on 9 January, the US Southern Command said. "In a pre-dawn action, Marines and Sailors from Joint Task Force Southern Spear, in coordination with the Department of Homeland Security, launched from the USS Gerald R. Ford and apprehended the tanker Olina in the Caribbean Sea without incident," the command said. The Olina was sanctioned by the US under the name Minerva M in October 2025, by the EU in May 2025 and by the UK in December 2024 for carrying Russian oil. The vessel's registered owner is Tantye Peur, Hong Kong, according to the IMO database. The tanker last called at Russia in September 2024, when it loaded dirty products from Taman, Kpler data show. In 2025, the vessel was mostly involved in Venezuelan voyages, according to Kpler. This is the fifth confirmed tanker seizure by the US in recent months. The US Coast Guard seized two vessels in December after President Donald Trump declared a partial oil blockade of Venezuela targeting tankers under US sanctions. It later seized the Marinera and M Sophia on 7 January. By Andrey Telegin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Frontline begins fleet renewal with VLCC sales
Frontline begins fleet renewal with VLCC sales
Singapore, 9 January (Argus) — Norwegian shipowner Frontline has announced a major fleet renewal initiative aimed at modernising its operations and enhancing fuel efficiency. The plan includes acquiring new vessels and selling eight of its oldest first-generation ECO Very Large Crude Carriers (VLCCs), built between 2015 and 2016, which will be sold for a total of $831.5mn, the shipowner said in an 8 January announcement. Following the repayment of existing debt tied to these ships, Frontline expects to generate net cash proceeds of approximately $486mn. The company also expects recording a gain of $217.4mn-$226.7mn in the first quarter of 2026, depending on the delivery dates of each vessel. The transaction remains subject to customary closing conditions in line with industry standards. At the same time, Frontline has also entered an agreement to purchase nine newbuilding contracts for latest-generation, scrubber-fitted ECO VLCCs from an affiliate of Hemen Holding Limited, its largest shareholder, for approximately $1,224mn. Six vessels are under construction at Hengli Shipyard and three at Dalian Shipyard, both in China. Seven vessels are expected in 2026 starting in the third quarter, one in the first quarter of 2027, and the final vessel in the second quarter of 2027. "These two transactions enable Frontline to renew its fleet by replacing 10-year-old first-generation ECO vessels with latest-generation, scrubber-fitted ECO vessels at very firm pricing. This aligns with our strategy of operating one of the most modern, cost- and fuel-efficient fleets in the market," said chief executive of Frontline Management AS, Lars H. Barstad said. Upon completion of these transactions, Frontline's fleet will comprise 81 vessels, including 42 VLCCs, 21 Suezmax tankers, and 18 LR2/Aframax tankers. The announcement follows a surge in VLCC tankers sale and purchase activity in recent days. South Korea's Sinokor Merchant Marine purchased seven VLCCs , while Belgian shipowner CMB.Tech had sold six VLCCs . The Argus -assessed VLCC freight rate on the Mideast Gulf to Asia Pacific route plunged in the second half of December as chartering activity slowed — a typical seasonal trend as market participants take holidays. Between 15 to 31 December, the rate fell by 60pc, from WS126 to WS50. Corresponding Argus -assessed time-charter equivalent earnings slumped by 75.5pc over the same period, from $121,652/d to $29,829/d. But freight rates have started to recover, following predictions that VLCC demand could stay strong through at least the first half of 2026, driven by supportive geopolitical and regulatory developments. By Sureka Elangovan and Sean Lui Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
