Stan Shebs
The Panama Canal shoaled during the rainy season due to severe drought, and LNG tankers idled for an extended period of time, writes The Financial Times.
The wait time for LNG tankers in the Panama Canal region has increased from 8 to 18 days since July 10, according to shipping company Norton Lilly. Additionally, according to Xeneta, the average cost of a 40-foot (12-meter) container urgent shipping from China to the U.S. Gulf Coast via the canal has climbed by 36% to $2.4 thousand.
Industry insiders claim that the risk of LNG tanker delays has increased because container ships frequently reserve access to the canal months in advance. A week may add to delivery schedules if some are asked to shift commodities from Asia to the United States via the Suez Canal, the newspaper warns.
The situation was caused by one of the worst droughts in the past 100 years, which resulted in freshwater reservoirs to have lower water levels. The El Nio phenomenon, which warms the Pacific Ocean's surface and impacts rainfall, has made its effects worse.
source: ft.com
The wait time for LNG tankers in the Panama Canal region has increased from 8 to 18 days since July 10, according to shipping company Norton Lilly. Additionally, according to Xeneta, the average cost of a 40-foot (12-meter) container urgent shipping from China to the U.S. Gulf Coast via the canal has climbed by 36% to $2.4 thousand.
Industry insiders claim that the risk of LNG tanker delays has increased because container ships frequently reserve access to the canal months in advance. A week may add to delivery schedules if some are asked to shift commodities from Asia to the United States via the Suez Canal, the newspaper warns.
The situation was caused by one of the worst droughts in the past 100 years, which resulted in freshwater reservoirs to have lower water levels. The El Nio phenomenon, which warms the Pacific Ocean's surface and impacts rainfall, has made its effects worse.
source: ft.com