While the LPG carrier market remains focused on Middle East tensions and cargoes heading to India, Panama Canal auction slot fees are climbing sharply
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.
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