The Panama Canal uses the Ormuz Strait blockade. LNG changes global routes

The disruptions in the Ormuz Strait region transform the global energy and shipping market, which is why the Panama Canal is gaining importance as an alternative route for LNG shipping.

Increase in LNG traffic through the Panama Canal

In recent days, the Panama Canal Board has reported a growing number of reservations for LNG in the first half of April. The reservation system indicates an average of one LNG unit per day. About 65% of the crossings are carried out towards the Pacific Ocean, the remaining 35% towards the Atlantic.

This dynamics remains directly linked to the war in the Middle East, which restricts freedom of navigation in the Ormuz Strait area.

Channel as an alternative to disrupted routes

Administration Panama Canal stresses the readiness to operate increased LNG traffic in the short term. Restoring the prior booking system – 30 and 15 days before the scheduled transition – is intended to facilitate the planning of transitions at higher risk.

In the assessment of market participants, persistent distortions can permanently increase the importance of the channel as a key link of global energy supply chains.

Redevelopment of global energy routes

Market operators indicate a progressive diversification of transport directions. Energy raw materials are increasingly moving from the Gulf of Mexico to Europe, Australia, and to the western coast of the United States.

Tanker charter rates result from two factors limiting the availability of tonnage. The first is to extend transport times.

Pressure on the oil tanker market

Time extension transport and limited availability of units cause a sharp increase in charter rates. This is particularly evident in the segment of large oil tankers.

About 20% of the merchant ship fleet is over 20 years old, while the largest oil companies prefer units not older than 15 years old, which further increases fleet pressure.

Market under prolonged uncertainty

Experts point out that the current situation is not simply due to an increase in demand, but, above all, to a disturbance in fleet availability and an increase in transport routes.

If restrictions in the area Ormuz Strait continue, high charter rates can become a new standard. As a result, the Panama Canal will remain one of the key beneficiaries of this change in the global maritime market.