Panama Canal restrictions are rerouting LPG shipping flows

Panama Canal restrictions are already forcing ships to take multi-week detours via the Suez Canal and Cape of Good Hope. One shipping segment is more exposed to these reroutings than any other: specialized tankers that carry liquefied petroleum gas (LPG) from the U.S. to Asia. America is the world's largest exporter of LPG, i.e., propane and butane. Since the Neopanamax locks opened in 2016, the vast majority of U.S. LPG exports to Asia have been loaded on very large gas carriers (VLGCs) and sent through the Panama Canal. (VLGCs were too large to fit in the older Panamax locks.) Canal…