August 28, 2026 (Bloomberg) – Increased congestion at the Panama Canal is causing some gas tankers to take unexpected routes, including a rare detour around South America and the potential for shuttling through the canal.
Recently, two supertankers were seen performing an unusual ship-to-ship transfer near Balboa port on Panama’s Pacific coast, based on vessel-tracking data and reports from traders and shipbrokers. This process allows one tanker to move back and forth through the canal, helping to maintain a steady supply of liquefied petroleum gas to customers in Asia, according to traders.
The ongoing war in Iran has increased traffic through the canal, while stricter rules have been put in place regarding cargo limits and the number of ships allowed to cross due to dry conditions from El Niño. As a result, waiting times for ships without prior bookings have lengthened, with some operators paying millions to skip ahead in line.
Currently, 14 ships are waiting near the canal without reservations, and there are 115 ships scheduled to transit, a canal spokesperson reported on Friday. The 14 ships without bookings that are trying to head north could wait up to 8 days, while those heading south may face waits of up to 4 days.
The most significant impact is on larger Neopanamax vessels that usually transport LPG from the US Gulf Coast to Asian markets. Rates and wait times for the smaller Panamax tankers, which use a different set of locks, have not risen as much, as noted by traders.
At Balboa, the Panamax Energia Grandeur is transferring its cargo to the Eneos Wisdom, which is a Neopanamax tanker. The Energia Grandeur was previously heading across the Pacific to Japan before turning back. This shift suggests that its charterer found it more beneficial to use the ship for shuttling gas through Panama instead of committing it to a lengthy journey to Asia, according to traders.
Both supertankers were chartered by TotalEnergies SE. The French oil and gas company, along with Eneos Holdings Inc., which has a stake in the management of Eneos Wisdom, did not provide a comment. MOL Energia Pte., the owner and operator of Energia Grandeur, also did not respond to inquiries.
In another instance, the Panama congestion has led another supertanker, Gas Scorpio, to take an unusual trip around South America to load cargo in the US. This journey adds about a month to the total transit time and is currently underway off the coast of Chile. A similar route was taken in 2023 when low rainfall disrupted traffic in the canal.
“The global LPG market is already under strain due to tensions in the Strait of Hormuz, and the situation at the Panama Canal is just another disruption it cannot afford,” said Julian Renton, lead analyst for natural gas liquids at East Daley Analytics. “This situation clearly shows how geopolitical issues, climate factors, and energy security are intersecting in real-time.”