VLGC rates rise as ship supply tightens
Rates to haul LPG on very large gas carriers are heading north again as more ships get diverted to loading areas in the west-of-Suez.
As of yesterday, the Baltic Exchange assessed rates on the benchmark Arabian Gulf-Asia Pacific route at $106.857/tonne, up $0.78 from 5 September and up $4 from a week ago.
That works out to more than $92,750/day at current bunker prices in Fujairah.
Norwegian broker Lorentzen & Stemoco commented in its latest weekly report: “In the AG, there aren’t many VLGCs left for September loading, but there might not be that many cargoes either. However, with the large number of VLGCs ballasting to the west and a record-high number of laden vessels going to the east, we expect the freight market to rebound.”
A Singapore-based broker told IHS Maritime: “Several ships have been fixed to load in the US Gulf and Algeria so that is giving owners the chance to push for higher rates.”
Reported fixtures show Japanese LPG importer Astomos Energy fixed Aurora LPG’s Aurora Capricorn for $160/tonne to load LPG in Bethioua, Algeria, for delivery into Chiba, Japan.
Another Japanese LPG importer, Eneos Globe, fixed Nakilat Shipping-operated Al Wukir for $104/tonne for a Ras Tanura-Chiba trip.
