# Fuel tankers face long slog as Panama Canal drought reroutes flows

> A severe Panama Canal drought is forcing tankers to take longer routes or bid for limited daily slots, rerouting fuel flows. U.S. diesel exports are shifting toward Europe, with about 45% of December exports headed there versus 21% last month.

- Date: 2023-12-13 · published 2023-12-13T12:00:00.000Z
- Category: logistics · region Panama · magnitude medium
- Page: https://feedsoft.ai/events/32878-fuel-tankers-face-long-slog-as-panama-canal-drought-reroutes-flows
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Longer routes and canal bottlenecks raise tanker freight costs and tonne-miles, which can extend to grain and feed shipping costs from the US Gulf and Pacific Northwest.

## Read by commodity

- DIESEL: bullish ▲
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DIESEL | 2022-11-05 | [Vietnam to continue facing difficulties securing fuel supplies, minister says \| Reuters](https://feedsoft.ai/events/38982-vietnam-to-continue-facing-difficulties-securing-fuel-supplies-minister-says.md) | -5.0% | -30.6% |
| DIESEL | 2017-09-01 | [Inter Continent Trading: Tankers: Persian Gulf vs Red Sea freight premium disappears as Harvey disrupts trade](https://feedsoft.ai/events/68843-inter-continent-trading-tankers-persian-gulf-vs-red-sea-freight-premium.md) | -0.2% | +1.5% |
| DIESEL | 2021-02-19 | [Traders rush to supply fuel to the U.S. as Texas freeze bites](https://feedsoft.ai/events/48823-traders-rush-to-supply-fuel-to-the-u-s-as-texas-freeze-bites.md) | +4.0% | -3.0% |
| DIESEL | 2023-07-27 | [Grain Journal \| USDA Grain Transportation Report (7/27): Panama Canal…](https://feedsoft.ai/events/34948-grain-journal-usda-grain-transportation-report-7-27-panama-canal.md) | +6.1% | +10.0% |
| DIESEL | 2019-06-17 | [US agriculture exporters under low-sulfur fuel pressure \| Journal of Commerce](https://feedsoft.ai/events/58773-us-agriculture-exporters-under-low-sulfur-fuel-pressure-journal-of-commerce.md) | +4.9% | +6.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/fuel-tankers-face-long-slog-panama-canal-drought-reroutes-flows-2023-12-13/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.