Panama in a Jam

Panama Canal congestion has intensified due to a surge in eastbound LNG carrier demand, which significantly reduced available transit capacity and tightened effective vessel supply. As of early April, average waiting times have increased 17 per cent month-on-month and more than doubled year-on-year, with the northbound queue of vessels up 147 per cent compared to the previous month and 210 per cent year-on-year. Auction prices for priority transit slots have soared to USD 700,000 to USD 800,000, deterring dry bulk operators from competing for capacity. While maintenance at the Gatun Locks has concluded, the backlog of arrivals and sustained demand, exacerbated by ongoing Middle East conflict, may prolong congestion well into late Q2, creating uncertainty in vessel availability and supporting freight rates across impacted segments.