How the Panama Drought is Swelling LPG Prices

This week, the Panama Canal Authority (ACP) announced a significant reduction in the number of vessels permitted to traverse the Panama Canal daily. The decision, a response to the severe drought—the worst in over seven decades—has been attributed to the El Niño weather pattern, which has led to the driest October on record since 1950. Starting November 3rd, the ACP will lower the available transit slots to 25 per day, down from the previously decreased number of 31. The authority has also planned a phased reduction strategy that will eventually limit transits to 18 slots per day by the beginning of 2024.