Spot rates for VLGCs have moved up past $110,000 per day as vessel delays continued.
The Baltic Exchange's VLGC index closed at $118.7m per tonne on Friday, equating to $110,300 per day for owners and up 7% month-on-month.
Norwegian investment bank Fearnley Securities said scrubber-fitted ships are banking $114,000 per day.
In Asia, market attention is firmly on the next round of cargo acceptances in the wake of the announced Saudi oil output cut, Fearnley added.
"However, volumes are still trickling through from both Australia and West Africa, which for now has been more than sufficient to absorb tonnage becoming available," analysts Espen Landmark Fjermestad, Peder Nicolai Jarlsby and Ulrik Mannhart said.
In the West, they argued that the new Panama Canal's booking system is likely to magnify the inefficiencies seen in recent months.
Planning time limited
TradeWinds has reported that the lack of slots here for VLGCs looks set to become more acute due to the changes, which will likely limit the advance booking time for owners and operators of gas ships to a matter of weeks, making scheduling more complex.
One source said this could help sustain rates in the longer term as vessels are forced to take longer-haul routes.
Fearnley added that activity for February dates has continued, although there are questions whether near-term activity can continue at the same pace.
"Although the [arbitrage] remains open on a theoretical basis, delays and demurrage cost makes voyage economics difficult for certain market players," the company said.
Cleaves Securities said last week was a good one for VLGCs, with steady activity in both hemispheres.
The investment bank also believes the new Panama Canal rules will curtail VLGC transits, with resulting trade inefficiencies supporting spot rates in the near term.
Transit times had already been stretched from two to eight to 10 days while ships wait for slots.
The bigger the better
Large LPG carriers will outperform smaller vessels in freight markets for the coming quarters, consultancy Drewry said last week.
High rates for VLGCs have not spilled over to the midsize, handy and small segments.
Charter rates for the big gas carriers kicked off the year on a high, with Zodiac Maritime’s 84,000-cbm LPG carrier newbuilding Durham being fixed at a very strong level.
Brokers said the ship was booked for 12 months at $1.6m per month, equating to a rate of $52,500 per day. The charterer has yet to be identified.
The rate is significantly higher than that done on VLGCs being fixed for similar business in November and December.
