Getty/Joe Readie
- Two gas tankers crossed the Pacific, then U-turned within 10 miles of the Panama Canal, Bloomberg reported.
- An intense drought has lowered the canal's water level, limiting the number of ships that can pass through.
- That has created a massive backlog of ships waiting to cross, forcing some to seek alternate routes.
Two gas tankers crossed the Pacific Ocean, but recently took a U-turn just short of the Panama Canal because of the huge traffic jam caused by low water levels, Bloomberg reported.
The tankers, Pyxis Pioneer and the Sunny Bright, were within 10 miles of the canal before they changed course, according to ship-tracking data compiled by Bloomberg.
Their destinations were unclear, but the vessels, which can transport roughly 158,000 cubic meters of liquefied petroleum gas, were empty after delivering their cargoes in Asia.
One tanker that U-turned was signaling a course towards Houston, the report said, suggesting it will bypass the traffic jam at the Panama Canal with a massive detour all the way around South America to get to the US Gulf Coast.
The other ship initially headed south as well, then turned west, and has indicated that it is still waiting for new orders.
The ships' unusual maneuvers further highlight how the intense drought that's drying up the Panama Canal is threatening to stall trade in energy commodities, consumer goods, and food.
The Panama Canal is a critical junction of global trade, and in recent years has featured a boom in oil and gas shipments, helping American exports quickly make their way to Asia. Currently, the biggest LPG exporters in the area are US producers in the Gulf Coast.
In fact, petroleum products, chemicals, and coal rank in the top list commodities that make their way through the canal, according to the Panama Canal Authority.
But dwindling water levels in the Gatun Lake, which feeds into the waterway, has restricted the number of vessels allowed to pass through the canal.
The quotas have become so stringent that it's created a massive backlog, with some companies paying millions of dollars to buy an earlier place in line.
As recently as August, more than 200 ships were waiting to cross the canal. But by early October, that was down to about 95.
Still, the amount of time it takes to make that journey was about nine-and-a-half days, up from the previous duration of two-and-a-half days, Insider previously reported.