top of page
Search
  • Writer's pictureStephen Fodor

How the Panama Canal traffic jam is affecting ocean shipping


December 2, 2020


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.


The good news for LNG and LPG shipowners is that delays are actually a tailwind for returns. Every day a bulk-cargo ship is stuck waiting at anchorage off Panama is a day less it can vie for spot contracts at the end of its voyage. Less competition equals higher rates.


Please contact us for further information or questions – info@tradelogicintl.com

6 views0 comments

Recent Posts

See All

Importer Pleads Guilty to Duty Evasion

The owner of a U.S. based import business faces a maximum penalty of five years in prison, a $250,000 fine, a three-year term of supervised release, and a payment of $1,090,000 in restitution. The imp

Subscribe to My Linkedin Newsletter

To help you keep up to date on topics the impact the U.S. international trade community, be sure to read my latest newsletter and subscribe for future updates too. https://www.linkedin.com/posts/trade

Section 301 Duty Exclusions Set to Expire on 12/31/23

Unless Congress acts quickly, the duty exclusions currently in place for certain products imported from China are set to expire on Dec. 31st. Importers who currently enjoy these exclusions on their pr

Comments


  • Twitter
  • LinkedIn
  • Facebook
  • YouTube
  • Instagram

need assistance from a licensed CUSTOMS broker?

Thanks for submitting!

bottom of page