The oil tanker Cururo is taking an extended route from Houston to Chile, circumventing the Panama Canal due to a severe drought affecting Panama. The alternative journey, spanning over 10,000 nautical miles and taking 32 days, contrasts with the typical 23-day, 5,000-mile route through the canal. This deviation is a response to challenges securing passage slots amid Panama's drought. As a result, U.S. gasoline shipments to the West Coast of South America, especially Chile, are expected to decrease. Instead, Chile is likely to source gasoline from Asia. The shift in trade routes is also impacting U.S. diesel exports, with an increasing flow to Europe due to Panama Canal congestion. This redirection is causing higher shipping costs, increased tonne-miles, and elevated freight rates as vessels adjust their routes to navigate around logistical challenges.

SOURCE:GOOGLE