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Panama Chaos Grows as US Diesel Shipper Takes the Long Route
G Captain ^ | Dec 5 2023 | Staff

Posted on 12/08/2023 9:58:25 AM PST by texas booster

The worsening bottlenecks at the drought-stricken Panama Canal are pushing at least one US diesel shipper to sail around the tip of South America en route to Chile for the first time since 2020.

The vessel Green Sky is hauling ultra-low sulfur diesel loaded at Citgo Petroleum Corp.’s Clifton Ridge terminal in Louisiana to Valparaiso, Chile, according to Bloomberg vessel tracking and Kpler. Rather than traversing through Panama, the vessel is headed down the eastern coast of South America toward the Strait of Magellan, the first such voyage for a cargo of Gulf Coast diesel since 2020, according to Kpler.

The journey is expected to take about a week longer than it would via the canal at a time when freight rates are near record highs.

The cost to haul fuel from the US Gulf Coast to Chile surged to a record $4.6 million per shipment in late November, according to data from Argus Media. That’s more than twice what it cost at the beginning of the year. Freight rates have surged as a historic drought left water levels in the Panama Canal so low that authorities have curtailed traffic, creating huge, prolonged delays.

(Excerpt) Read more at gcaptain.com ...


TOPICS: Foreign Affairs; News/Current Events
KEYWORDS: panamacanal
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While Green Sky’s journey marks the first US Gulf Coast diesel cargo to go around South America in three years, refiners in Texas and Louisiana are known to divert cargoes across the Atlantic to European markets when the Panama route is jammed. In the past, such delays tended to be related to maintenance work, and, as such, were mostly short-lived. This time, however, there is little relief in sight with shipping restrictions set to tighten in the months ahead.
1 posted on 12/08/2023 9:58:25 AM PST by texas booster
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To: texas booster

All of this chaos on the Panama Canal, even after China doubled the size of the canal without adding additional lakes.

Who knew that engineers back in the early 1900’s could do math and engineering!


2 posted on 12/08/2023 9:59:52 AM PST by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: texas booster

This is all caused by Jimmmmy Carter selling the Canal to the Chinese.


3 posted on 12/08/2023 10:03:11 AM PST by chopperk
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To: texas booster

This would t be a problem if we had used nukes to directly connect the gulf of Mexico with the Pacific boy blowing and ocean level gap through Panama.


4 posted on 12/08/2023 10:18:26 AM PST by wildcard_redneck (He who sacrifices freedom for security deserves neither.)
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To: texas booster

Why don’t they just use the Norhtwest Passage that man-made climate change has opened? / sarc


5 posted on 12/08/2023 10:22:40 AM PST by where's_the_Outrage? (Drain the Swamp. Build the Wall.)
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To: texas booster

I’m confused. How can the Panama Canal have such low water levels when the sea levels are supposedly rising higher than ever from global warmageddon or sumthin’?


6 posted on 12/08/2023 10:24:34 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right

Because science, or global warming, or climate change, or melting icebergs, or something..


7 posted on 12/08/2023 10:29:04 AM PST by GeorgiaDawg32
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To: Tell It Right

The level of the fresh water lakes has nothing to do with the sea level.


8 posted on 12/08/2023 10:30:10 AM PST by steve86 (Numquam accusatus, numquam ad curiam ibit, numquam ad carcerem™)
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To: Tell It Right
I'm confused. How can the Panama Canal have such low water levels when the sea levels are supposedly rising higher than ever from global warmageddon or sumthin’?

I believe the canal uses fresh water from lakes and reservoirs to maintain levels.

9 posted on 12/08/2023 10:34:39 AM PST by 1Old Pro
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To: Tell It Right; steve86

To be the Devil’s Advocate here, they are two different things. The water levels used in the canal and lock systems are fresh water (they don’t use seawater) may indeed come into play if they are too low.

Of course, they will say it is caused by global warming induced drought. To them, everything is.


10 posted on 12/08/2023 10:36:33 AM PST by rlmorel ("The stigma for being wrong is gone, as long as you're wrong for the right side." (Clarice Feldman))
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To: 1Old Pro
I believe the canal uses fresh water from lakes and reservoirs to maintain levels.

Interesting. Even with the canal connecting the Atlantic Ocean with the Pacific Ocean?

11 posted on 12/08/2023 10:42:40 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right
The Panama Canal, as every schoolboy knows, is entirely above sea level. Significantly so. It is operated entirely with fresh water.

What fewer people know is that the Red Chinese doubled the carrying capacity of the Canal, without doubling its water supply. Apparently, the Chinese didn't realize that using water faster than it is replaced will cause problems.

12 posted on 12/08/2023 10:44:31 AM PST by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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To: Tell It Right
Elevation profile of the Panama Canal:

What this does not show (well) is that sea level on the Pacific side is different from sea level on the Gulf of Mexico side; Pacific is higher IIRC. A "sea level" canal would have a ferocious current in it.

13 posted on 12/08/2023 10:50:00 AM PST by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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To: Tell It Right

I think I read that the parallel canal exhausted the previous amount of water on hand. Having two canals with the same amount of lake water does not work, apparently.

Sounds stupid, if this is what happened with the Chicoms.


14 posted on 12/08/2023 10:51:23 AM PST by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: NorthMountain

Exactly.


15 posted on 12/08/2023 10:52:43 AM PST by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: chopperk

Was there a price?


16 posted on 12/08/2023 10:54:33 AM PST by sasquatch
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To: ConservativeMind

It has occurred to me that perhaps the ChiComs screwed up the Panama Canal deliberately ...


17 posted on 12/08/2023 10:55:13 AM PST by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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To: chopperk

“This is all caused by Jimmmmy Carter selling the Canal to the Chinese.”

Yep, the bad decisions by almost every RAT president since Woodrow Wilson come back to haunt us.


18 posted on 12/08/2023 10:58:51 AM PST by wjcsux (On 3/14/1883 Karl Marx gave humanity his best gift, he died. )
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To: texas booster

Sounds like either the ChiComs are doing a lousy job of managing the former American canal, or they are trying to choke off traffic prior to an attack on the Republic of China.


19 posted on 12/08/2023 11:06:03 AM PST by PAR35
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To: Tell It Right

The middle of the canal is much higher than either end. Ships have to go up and down 85 feet to transit. They’d need to add a lot of huge pumps to get seawater to the top.


20 posted on 12/08/2023 11:08:40 AM PST by PAR35
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