LNG shippers unimpressed by boost to Panama Canal transit slots

LNG shippers are not tempted by extra slots at the Panama Canal, and remain set on transiting the Cape of Good Hope route to reach Asian markets, S&P Global reported last week. LNG vessels will still face added restrictions despite the boosted slots, but shippers also don’t see a need to transition away from Cape of Good Hope because the route is “cheap enough,” a European shipbroker told the outlet. Unlike traders, importers which keep LNG cargoes for domestic use, such as South Korea and Japan, may turn to the new slot, another Asia-based broker said. The Cape of Good Hope is particularly liked by US LNG exporters, with 18 shipments transiting so far in April, compared with just 3 in April of last year, the outlet also said.

ICYMI- The Panama Canal Authority announced plans to increase daily slots to 32 ships per day between mid-April and June, last week.