Risk of vessel capacity and transportation constraints due to Panama Canal transit restrictions
First written in FY2024-Q2. 2 of 5 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2025.
The whole theme swung hardest in 2026: 10 of 13 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「VLGCs (very large LPG carriers): Market rates were below the previous consolidated fiscal year because vessel supply increased as newbuild deliveries rose and the impact of low water levels in the Panama Canal eased.」
The risk of tight supply and demand due to transit restrictions weakened from the previous fiscal year as the impact of low water levels in the Panama Canal eased and vessel supply increased. - FY2025-H1MitigatedAnnual report
「VLGCs (very large LPG carriers): Although long-haul transportation from the United States to Asia increased, market rates were significantly below the level in the same interim period of the previous year because vessel supply increased as newbuild deliveries increased and the impact of low water levels in the Panama Canal eased.」
The risk of tight supply and demand attributable to restrictions on Panama Canal transit weakened from the previous period as the impact of low water levels in the canal eased and vessel supply increased. - FY2024WorsenedAnnual report
「VLGC market rates reached a record high in September as long-haul transportation from the United States to Asia increased and restrictions on Panama Canal transit tightened vessel supply and demand.」
Restrictions on Panama Canal transit tightened vessel supply and demand for VLGCs and affected the market enough to drive a record high in September. - FY2024-Q3WorsenedAnnual report
「For VLGCs (very large LPG carriers), long-haul transportation from the United States to Asia increased, while restrictions on Panama Canal transit tightened vessel supply and demand. Market rates remained high after reaching a record high in September and were significantly above the level in the same quarter of the previous year.」
Restrictions on Panama Canal transit affected LPG transportation in addition to automobile transportation, tightening vessel supply and demand and contributing to sustained high VLGC market rates. - FY2024-Q2First statedAnnual report
「In the automotive business, vessel supply and demand tightened as production of finished vehicles recovered and sales demand remained firm in each country, amid continuing port congestion caused by labor shortages and other factors and restrictions on Panama Canal transit.」
Continuing restrictions on Panama Canal transit affected tight vessel supply and demand for automobile transportation and were identified as a new external risk.