Panama Canal Congestion Drives Gas Tankers To Unusual Routes

By Nicholas Lua

Aug 28, 2026 (Bloomberg) –Growing congestion at the Panama Canal is forcing some gas tankers into unusual journeys, from a rare detour around South America to the possible emergence of shuttling through the waterway.

Two supertankers were recently observed conducting an unusual ship-to-ship transfer off Balboa port on Panama’s Pacific Ocean coast, according to vessel-tracking data, traders and shipbrokers. The process allows one of the tankers to shuttle back and forth through the canal to ensure the steady flow of liquefied petroleum gas to Asian customers, traders said.

The Iran war has diverted more traffic through the canal, while authorities tightened restrictions on how much cargo vessels can carry along with the number of ships that can cross due to drier conditions triggered by El Niño. Waiting times for vessels that haven’t made bookings in advance to transit the waterway have grown in recent months and some operators are paying millions of dollars to jump the queue. 

Read Also: Supertanker Pays Record $4.6 Million to Skip Panama Canal Line

There are currently 14 ships waiting near the canal without reservations, while there’s a total of 115 scheduled to transit, a canal spokesperson said Friday. Of the 14 vessels without bookings, those seeking northbound passage face a maximum wait of 8 days, while those looking to go south have to wait as long as four days, the spokesperson said.

The biggest impact has been on wider Neopanamax vessels, which are typically used to ferry LPG from the US Gulf Coast to Asian customers. Rates and wait times for the narrower Panamax tankers, which go through a separate set of locks, haven’t increased as much, according to traders.

Off Balboa, the Panamax Energia Grandeur is transferring its cargo to the Eneos Wisdom, a Neopanamax tanker. The Energia Grandeur was previously carrying LPG across the Pacific toward Japan before U-turning. The move suggests its charterer saw more value in deploying the ship to shuttle gas through Panama, rather than tying it up on a month-long journey to Asia, traders said.

The two supertankers were chartered by TotalEnergies SE. The French oil and gas major, along with Eneos Holdings Inc., which owns a stake in the ship manager of Eneos Wisdom, declined to comment. MOL Energia Pte., the owner and ship manager of Energia Grandeur, did not respond to a request for comment. 

Separately, the Panama logjam has prompted another supertanker, Gas Scorpio, to embark on a rare voyage around South America in order to load a cargo in the US, a costly trip that adds around a month of transit time. The vessel is currently off Chile. A similar voyage was last made in 2023, after low rainfall snarled traffic through the waterway.

“The global LPG market is already stretched thin from Strait of Hormuz tensions, and the Panama Canal is one more disruption it simply couldn’t afford,” said Julian Renton, lead analyst covering natural gas liquids at East Daley Analytics. “It’s a vivid illustration of how geopolitics, climate, and energy security are colliding in real time.”

© 2026 Bloomberg L.P.

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