The Panama Canal Authority (ACP) has modified the waterway’s booking system for Neopanamax vessels starting from October 2018 and expects this new regulations to support the steady growth of the LNG segment, which began transiting through the waterway following the inauguration of the expanded canal in 2016. The Neopanamax (also labelled as New Panamax) size specification is determined by the ACP and corresponds to terms for the size limit of ships travelling through the Panama Canal.
In October 2018, the Canal waterway will be capable of transiting two LNG vessels the same direction in the same day and up to three carriers in the same direction during the same day in case of particularly high demand. Starting from October 2018, natural daylight restrictions for LNG transits will be lifted and added capacity will be offered to shippers. Besides, it will enable two different LNG vessels to transit the Canal the same day in two different directions.
The Panama Canal expansion took place in July 2016 and enabled to accommodate 90% of the world’s current LNG tankers. Prior to the expansion, only 6% of the global LNG tanker fleet could transit the canal. Moreover, the expansion also has significant implications for LNG trade, reducing travel time and transportation costs for LNG shipments from the US Gulf Coast to key markets in East Asia. The travel time from US Gulf Coast to markets in northern Asia such as Japan, South Korea, China and Taiwan was reduced by approximately one-third.