Panama Canal gridlock could see LPG rates shoot up higher

The traffic jam on the Panama Canal will likely only get worse, while VLGC rates only get better thanks to recent canal policy changes.

One of the giant LPG carriers seeking to transit the Central American waterway will have to wait until mid-January to book a slot, while 17 others currently wait on either side, Cleaves Securities said.

The investment bank said the worsening gridlock will reduce effective fleet capacity by 6.7%,