LPG World Markets
VLGC freight rates have nosedived in the past two months amid lower export volumes from the US in 2Q although overall US exports registered robust year-on-year growth rates in 1H 2020. In addition, LPG exports from the Middle East registered a year-on-year decline in 1H 2020 driven by oil production cuts. Unfavorable arbitrage economics to ship US barrels to the East and to Europe/Med weighed on US exports creating a long list of available prompt vessels. On a time charter equivalent basis, VLGC spot rates for AG-Japan voyages declined below Poten’s one-year average TC assessment in June.
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