Panama Canal Congestion Forces Gas Tankers to Take Unusual Routes
Aug 30, 2026



PHOTO COURTESY: REUTERS

Growing congestion at the Panama Canal is forcing some gas tankers to use unusual routes and operations as vessels face longer waiting times. Increased shipping traffic, together with restrictions caused by drier conditions linked to El Niño, has affected the movement of vessels through the important waterway.

Two gas tankers were recently seen carrying out a ship-to-ship cargo transfer near Balboa on Panama’s Pacific coast. The operation allows a smaller Panamax tanker to move liquefied petroleum gas through the canal before transferring the cargo to a larger Neopanamax vessel for the longer voyage across the Pacific.

According to the Panama Canal, 14 vessels without reservations were waiting near the canal, while 115 ships were scheduled to transit. Unbooked northbound vessels could face waits of up to eight days, while southbound vessels could wait as long as four days. Larger Neopanamax vessels have been more affected by the delays.

The congestion has also led some operators to consider much longer routes. One gas tanker was reported sailing around South America to reach the United States, adding about a month to its voyage. The situation shows how canal restrictions, weather conditions, and changes in global shipping traffic can affect gas transportation routes and operating costs.