. This, in turn, is increasing shipping costs for LPG from the United States, the Energy Information Administration said on Tuesday. The Panama Canal Authority has stated that the water levels at the artificial Gatun Lake are at their lowest levels in nearly 30 years on lower-than-normal precipitation. Gatun Lake lies between the Atlantic and Pacific locks, and is the reservoir for holding the water needed to operate those lock systems.
Long lines have now formed by vessels waiting to enter the canal. The delays have caused VLGC rates to soar, with rates hitting $250 per ton as of the end of September for the Houston-Chiba route. “The Panama Canal is a major energy transit point. The Panama Canal is important for trade between the United States and East Asia and the western coast of South America.