Since the Panama Canal debuted its larger Neopanamax locks in 2016, the three heaviest users have been container ships, liquified natural gas (LNG) carriers and liquefied petroleum gas (LPG) carriers. Now, transit demand for all three segments is simultaneously surging. On top of that, COVID issues are reportedly affecting canal operations.
The consequence over the past month and a half: transit delays. The good news for containerized cargo shippers is that container lines have reserved booking slots. The delays are affecting ships without reservations.
What’s causing the delays? During the latest conference call of Oslo-listed BW LPG, the company’s executive vice-president, Pontus Berg, attributed delays to bad weather, high traffic and “partly … to COVID.”
Argus Media reported that delays were partially driven by “tugboat crew staffing complications induced by COVID-19 [that are] limiting the number of simultaneous transits just as seasonal factors like increased container shipping and higher LPG heating are increasing demands on the canal.”