Geopolitics · Rolling

Panama Canal: water levels and tanker priority

Auction pricing and what it means for clean and LPG flows from USGC.

Gatun Lake levels have improved with seasonal rainfall, allowing the Authority to lift transit slot allocations back toward 36/day. Auction prices for unbooked slots have fallen materially from the 2024 peak but remain above pre-drought norms.

For USGC LPG and clean exporters into Asia, the cost-of-transit improvement is meaningful: roughly $0.50/bbl removed from the delivered cost of an LPG VLGC cargo into Chiba.