“Houston-bound LPG tankers are diverting from the Panama Canal due to increased waiting times in an unfortunate turn of events for the drought-stricken waterway.

“According to LSEG Shipping Research, two LPG tankers are diverting indicating Houston. A diversion, via the Strait of Magellan or Cape Horn, adds about an extra 9,500 miles or 25 days more to a voyage compared to canal transit.

“Six LPG tankers remain at Balboa Anchorage and waiting times are about seven days on average. Transit slots continue to be auctioned to the highest bidder with typical USD$300k-400k prices ballooning to a record USD$4m this week.

“These diversions will inevitably drive up shipping costs as well as supply chain disruption. The associated increase in emissions is also problematic at a time when decarbonisation is high on the agenda.”