Some Japanese refiners are seeking to speed up deliveries of U.S. crude following disruptions caused by the Iran war, opting for smaller ships that can transit the Panama Canal rather than sail around Africa.
Three mid-size tankers are scheduled to deliver U.S. oil to Japan from late April through May, with two already transiting the Panama Canal and moving into the Pacific Ocean, according to ship-tracking data compiled by Bloomberg. The third, Aframax Seaways Yosemite, is nearing the canal from the Caribbean.
U.S. oil is typically delivered to Japan on very-large crude carriers, which have the capacity to carry 2 million barrels, but are too big to traverse the Panama Canal and need to sail around Africa’s southern tip to get to Asia. There are at least four VLCCs currently taking this route to Japan from America, according to the ship-tracking data.