Panama Canal congestion sends VLGC auction fees higher

According to intelligence services and data provider Anfil Gas, congestion in the Panama Canal – driven by surging traffic to and from US Gulf Coast (USGC)/North American terminals – combined with maintenance work on its old locks, has pushed auction fees significantly higher.

Anfil Gas data shows that two major charterers recently secured southbound (USGC-Far East) slots for two VLGCs at US$2.1M and US$1.5M, respectively, for the first week of April. By comparison, a southbound slot for a neo-Panamax VLGC on 31 March was secured at US$946,000, highlighting the sharp increase.

The maintenance work concerns the East Lane of the Gatun Locks and is scheduled from 7 to 9 April, reducing available Panamax lock slots from 20 to 16 during this period.

Anfil Gas told Riviera that southbound slots usually trade below US$500,000. Notably, in late 2023, when drought and congestion affected the Panama Canal, a northbound auction slot reportedly reached nearly US$4.0M.

Anfil Gas noted that, for now, the Panama Canal situation is not having an impact on freight rates, but increased rerouteing could potentially change that.

Recent data show that a 2016-built, Hong Kong-flagged VLGC originally bound for the Canal has diverted via the Cape of Good Hope.