Japanese refining companies speed up US oil transportation: abandon VLCC detouring around Africa, switch to medium-sized oil tankers through the Panama Canal.

Some Japanese oil refiners are seeking to expedite the delivery of US crude oil to cope with supply disruptions caused by the Iran war. They have chosen to use small vessels that can pass through the Panama Canal instead of taking the route around Africa. According to data, three medium-sized tankers are scheduled to transport US oil to Japan from late April to May - two of which have already entered the Pacific through the Panama Canal, while the third tanker, "Aframax Seaways Yosemite," is approaching the canal from the Caribbean Sea. It is understood that US oil is usually transported to Japan by Very Large Crude Carriers (VLCC), which can carry 2 million barrels of crude oil. However, these ships are too large to pass through the Panama Canal and must travel around the southern tip of Africa to reach Asia. Ship tracking data shows that at least four VLCCs are currently en route from the US to Japan via this route. Although these vessels arrive in Asia faster - taking about 30 days through the Panama Canal compared to around 50 days around Africa - their carrying capacity is only a fraction of that of a VLCC. An Aframax tanker can carry up to 800,000 barrels of crude oil, while a Suezmax tanker can carry around 1 million barrels. The "Aodies" tanker, as a Suezmax tanker, has already passed through the Panama Canal and is scheduled to deliver oil to Chiba Port on the east coast of Japan later this month. Meanwhile, Japanese shipowners have completely suspended voyages to the Persian Gulf and are seeking alternative sources through international waters or opening up new supply sources in North Africa, Central Asia, and other areas in order to relieve inventory pressures caused by the blockade of the strait. This reflects the high flexibility and sense of urgency of Japanese energy companies under extreme security threats. While companies are taking measures to safeguard themselves, the Japanese government is actively building a cross-Pacific energy defense system at the national level. In addition to launching a strategic petroleum reserve release plan since March 2026, Japan is in deep discussions with the US government to increase imports of Alaskan crude oil, aiming to utilize the advantage of a 12-day voyage from Alaska to Japan to create a relatively secure North Pacific energy corridor. Since the outbreak of the Iran war at the end of February, concerns about the supply of Middle East oil have continued to spread in the market, leading Japanese oil refiners to purchase large quantities of US crude oil for delivery in June and July. In addition, Japan is using ship-to-ship oil transfers far from the Middle East to ensure supply and avoid oil tankers entering conflict zones. The prospect of the end of hostile actions in the Middle East may mean that the period of transporting US crude oil to Japan by small tankers will be short-lived, although refiners and market participants remain cautious about a temporary ceasefire. According to the terms of the agreement, it is crucial for the Strait of Hormuz to be reopened, which may lead to more oil flowing out of the Persian Gulf.