Lower than average water levels at the Panama Canal are causing severe draft restrictions on vessels transiting the waterway, according to global container shipper Hapag-Lloyd AG.
While the limitations aren’t impacting LNG tankers, longer-term weather forecasts could cause problems for U.S. liquefaction projects that hope to send cargoes through the canal in the next few years.
“In general, liquified natural gas vessels that transit the canal have shallower drafts than the current restrictions. So at present, there are no issues,” said Jason Feer, global head of business intelligence at shipbroker Poten & Partners.
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A lack of rain has...