The Panama Canal is operating at maximum capacity with up to 38 daily transits as the Iran conflict drives more LNG tankers to the vital waterway.
PANAMA CITY: The Panama Canal is operating at its top capacity, handling between 36 and 38 vessels daily. Canal administrator Ricaurte Vasquez said the conflict involving Iran is boosting demand from owners and operators of liquefied natural gas tankers.
Demand is particularly strong for vessels loading at US ports. Since the war started, many ships have struggled to reach or have avoided the world’s largest waterway, the Suez Canal.
The crucial Strait of Hormuz, used to transport energy from Kuwait, Qatar and Bahrain, has also been closed. Panama is increasingly seen as an alternative route, especially to distribute US LNG to consuming countries, Vasquez said.
The world’s second-busiest waterway was already seeing more LNG traffic before the conflict began almost three weeks ago. It is now preparing to offer one slot per day for LNG tankers, a notable jump from a recent four per month.
“We have enough water now, so we are working at top capacity,” Vasquez said. He was referring to a previous drought that led the freshwater canal to impose passage restrictions between 2023 and 2024.
The increased demand is driving more daily transits than the average of 34 forecast for this fiscal year. The canal’s authority said a planned maintenance programme from March to September would not affect traffic.
“Cargoes must reach their destinations and the shortest route is still Panama, which has the capacity to accommodate additional transit,” Vasquez said. He added that seasonal demand from Asia-bound container ships typically decreases from January to March.
This seasonal lull allows the canal to offer more slots to tankers carrying energy products.
