Transit delays at the Panama Canal are proving to be a double-edged sword for the region’s MR tanker market, according to UK shipbroker Gibson.

Low water levels have led to both an increase in transit waiting days as well as the number of vessels waiting to cross the strategic waterway.

“The implications of these difficulties are clear; if vessels must sail an additional 10,000 nautical miles around Cape Horn and the Magellan Strait, this will increase both bunker consumption and sailing days with knock-on effects for vessel TCEs, supply chains and ultimately GHG emissions,” said Gibson.