Panama Canal delays near 10 days

Wait times for Neopanamax and LNG vessels to transit the Panama Canal are nine days for northbound voyages and eight days for southbound voyages.

Amid the delays, the backlog at the canal has reached 88 vessels, according to the Panama Canal Authority (ACP). Low water levels in Gatun Lake and unexpected arrivals of containerships, LNG vessels and dry bulkers have led to congestion and above-average wait times, the ACP previously told Argus, although it has not yet responded to Argus' most recent inquiry about the delays.

Very large gas carriers (VLGCs) have been the most-affected vessel segment. Yesterday, 14 VLGCs were waiting near the canal's southern entrance, and 12 were waiting near the canal's northern entrance, according to data analysis firm Vortexa. Those queues decreased today to 11 and six, respectively.

The VLGC congestion has led to tightened available tonnage supply for the vessel class in the US Gulf coast, which has helped lift rates over the past month. Since 5 March, the Houston-Chiba VLGC freight rate has risen by 48pc to $85/metric tonne, a two-month high.

Clean tanker rates in the US Gulf coast have also received support from congestion at the canal, although wait times for medium range (MR) product tankers, which use the canal's Panamax locks, are only three days for northbound voyages and six for southbound voyages.

Five MR tankers are waiting near the canal's northern entrance, and six are waiting near the canal's southern entrance, according to Vortexa.

Since 4 March, the US Gulf coast-Chile MR tanker rate has risen by 29pc to $1.285mn lump sum, a four-month high. Although the gains have been primarily attributable to increased oil product export demand in the US Gulf coast amid recovering refinery capacity following the Texas freeze that caused widespread outages in the state in February.

Canal congestion has had minimal impact on the dirty tanker market in the US Gulf coast, according to a shipbroker. Such traffic out of and into the US Gulf coast travels through the canal much less frequently than product or gas tankers.

Three Panamaxes are waiting near the canal's northern entrance, and two Aframaxes and two Panamaxes are waiting near the canal's southern entrance, according to Vortexa.

By Michael Connolly