Japan Taps Smaller Ships to Get US Oil Faster on Supply Concerns

Some Japanese refiners are seeking to speed up deliveries of US 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-sized tankers are scheduled to deliver US 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.