Very large gas carrier (VLGC) freight rates to ship LPG from the Gulf to Asia Pacific decreased as market players stayed away pending Saudi Aramco’s announcement of June LPG contract prices.
The Baltic Exchange assessed the benchmark rate at USD111.50/tonne on 26 May, down approximately USD0.19 from 22 May. At current bunker prices in Fujairah, that works out to daily earnings of USD108,604.
The only reported activity last week was for the usual Indian requirements.
Cooking and transportation has fueled India’s LPG demand lately.
Reported fixtures show Indian Oil Corporation fixed an Avance Gas ship for USD4.74 million and Hisui for USD4.35 million, while Bharat Petroleum fixed Jag Vishnu for USD4.46 million and Hindustan Petroleum fixed Kikyo for USD4.35 million.
However, brokers noted that with tonnage still tied up in Indian ports, as well as ongoing fixtures in Houston, Texas and West Africa, vessel availability is limited and would keep rates above USD100/tonne until at least next week.
Vessel-tracking data from IHS Maritime’s Market Intelligence Network show that VLGCs have been spending 20 days queuing outside Indian ports.
BW Sakura spent 405 hours in Haldia while Aurora Taurus spent 527 hours in the queue in Mumbai.