Aug. 21 at 2:26 AM
Chevron and other U.S. exporters are using ship-to-ship transfers to move liquefied petroleum gas (LPG) from the U.S. Gulf Coast to Asia as congestion and record transit costs disrupt Panama Canal traffic.
Two Chevron-chartered Neopanamax tankers, the Fritzi N and Pacific Yantai, are expected to receive LPG cargoes off Panama’s Pacific coast, likely transferred from smaller Panamax vessels that transit the canal. The larger ships can then carry the fuel across the Pacific to Asia.
The strategy highlights how energy traders are adapting to disruptions caused by the Iran war and worsening drought linked to El Niño, which has reduced water levels in the canal. About 60% of U.S. LPG exports have headed to Asia this year, up from 55% in 2025.
Panama Canal costs for large tankers have surged, with the fee for an unreserved Neopanamax tanker seeking immediate passage reaching a record
$4.6 million last week. Smaller Panamax vessels have faced less severe increases.
$CVX