Challenges at the Panama Canal could delay US ethanol exports to Asia

In Singapore, Platts reports that low water levels at the Panama Canal’s Gatun Lake which has resulted in implementation of a new freshwater surcharge on February 15 has led to some delays which are seen adding an 10-12 days of shipping time on to US-origin ethanol headed to Asia. Yet despite the delays, some traders felt that there wouldn’t be much of an impact on ethanol prices in the region due to lack of demand. Platts says in mid-February ethanol prices were $465.80/cu m CIF Philippines while domestic prices were around $1,200/cu m.