A tanker carrying around 910,000 barrels of US-produced crude oil from Texas arrived in Tokyo Bay on Sunday (April 26), according to Japanese media. The arrival completes a nearly 35-day cruise through the Panama Canal, one of the largest direct US crude deliveries to Japan in years.
The cargo on the tanker M/V Otis represents a significant shift in global energy flows, as buyers seek alternatives to Middle Eastern supply amid problems in the Strait of Hormuz, a critical chokepoint for global oil imports. The oil is planned to be piped ashore to Cosmo Oil’s Chiba refinery, where it will be converted into gasoline and other products.
Japan, which generally buys more than 90% of its oil from the Middle East, is diversifying its sources as regional tensions impact shipping and supply security, according to government officials. The long voyage from the US Gulf Coast demonstrates how international customers are rerouting goods, despite rising transportation costs and congestion at alternate ports such as the Panama Canal. According to recent industry estimates, transit fees and wait times in the canal have increased as vessels skip the Persian Gulf in favor of longer routes to Asia.
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