Panama Canal: A Bottleneck?

10 July 2017: The Panama Canal recently celebrated the one-year anniversary of its expansion. During this past year, 1,535 vessels transited through the new locks, averaging 4.2 per day. 140 of the transits were LNG vessels, giving an average of 0.4 transits per day over the entire year and representing 9% of total traffic. The benefits of the canal to LNG shipping are significant. A round-trip journey from the U.S. Gulf to Japan through the Panama Canal can take approximately 47 days and cost $1.00 per mmbtu, reducing total voyage time by almost 30 days and shipping costs by 28% (13-Mar-17: “Panama Canal Expansion”) compared to going around Cape of Good Hope, the most competitive alternative (Suez Canal is a shorter distance but more expensive at current fuel prices). Please fill out the following form to access the full article.