Panama Canal Congestion Hits Highest Levels Since 2022

Congestion at the Panama Canal has reached its highest levels since 2022, with vessel wait times extending up to 19 days. The logjam results from a combination of cargo restrictions imposed by the Panama Canal Authority due to El Niño-induced dry conditions and a surge in diverted traffic caused by the war in Iran.

TotalEnergies SE and other energy operators are employing expensive maneuvers to maintain energy security for Asian markets. TotalEnergies chartered two supertankers, the Energia Grandeur and Eneos Wisdom, to conduct a ship-to-ship transfer of liquefied petroleum gas off the port of Balboa. Other vessels, such as the supertanker Gas Scorpio, are detouring entirely around South America to load cargo in the United States, a route that adds approximately one month to the transit time.

While Neopanamax vessels face the most significant delays, some operators are paying millions of dollars to bypass the queue. These disruptions highlight the vulnerability of global energy supply chains to simultaneous climatic and geopolitical shocks.