Rates to ship LPG on very large gas carriers have fallen by USD10 per tonne as the market quietens ahead of Saudi ARAMCO’s announcement of LPG contract prices for October.
The Baltic Exchange assessed the benchmark Gulf-Far East rate at USD79 per tonne on 28 September, compared with USD89.50 per tonne on 15 September.
Based on current bunker prices in Fujairah, current freight rates work out to USD78,265 in daily earnings.
“It is usual for traders to pause and see what are the posted prices as that gives you an idea of the future short-term demand,” a Singapore-based trader told IHS Maritime.
Brokers told IHS Maritime that it is only demand from Indian importers and arbitrage cargoes from the US Gulf that is active.
However, one London-based broker told IHS Maritime that the number of new VLGCs entering the market is also putting pressure on freight rates.
IHS Maritime’s Sea-Web data shows that year-to-date, 23 VLGCs have been delivered. Since August, eight VLGCs have been built.