Logjam in Panama Canal forces shipowners to pay high fees

Chamber of Shipping > Blog > News > International > Logjam in Panama Canal forces shipowners to pay high fees

A logjam at the Panama Canal, caused by a drought and low water levels, is forcing shipowners to consider paying exorbitant fees to secure a crossing or diverting their vessels around South America. Japan’s Eneos Group reportedly paid $3.98 million in an auction to secure a canal crossing for its liquefied petroleum gas (LPG) tanker. Another shipowner, Pyxis Pioneer, is said to have diverted its tanker around South America, adding about a month to its journey. The congestion is disrupting trade between the US and Asia, with the canal authority setting increasingly drastic restrictions due to the depleted waterway.

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