Logistics

Record Panama Canal Fees Spark LPG Ship-to-Ship Transfer Strategy

Exporters including Chevron Corp. are adopting ship-to-ship transfers to move liquefied petroleum gas from the US to Asia amid soaring Panama Canal transit fees and congestion. Two Neopanamax tankers, the Fritzi N and Pacific Yantai, are scheduled to receive LPG cargoes off Balboa on Panama's Pacific coast from Panamax vessels that have transited the canal. Around 60% of US LPG exports have gone to Asia so far this year, up from 55% for the whole of 2025, as the market seeks workarounds to cope with maritime congestion driven by the Iran war and intensifying El Niño conditions.