Another bad week for VLGCs has seen spot rates fall 63% compared to the end of April.
Daily numbers have now plunged to just below $20,000 per day, down from $28,000 last week. That's a decline from more than $60,000 a month ago.
This is also 61% lower than at this point last year. Rates are moving down towards levels seen in the weaker markets of 2018 and 2017.
Joakim Hannisdahl, head of research at investment bank Cleaves Securities, said it had been "another dreadful week for VLGC spot rates".
Spreads collapse
"The LPG/naphtha spread has collapsed in the Far East, with LPG prices remaining low versus rising US LPG prices," he added.
"Although the recent collapse is slightly faster than we had forecast, we do see further downside ahead."
On Tuesday, Singapore VLGC owner BW LPG warned it expects vessel use to come under increased pressure from supply cuts and a big orderbook.
Fearnley Securities has said the price of propane in Mont Belvieu, Texas, is up 10% so far this year, while the one to two-month forward prices in Asia are down about 43% over the same period.
This has resulted in unworkable arbitrages and further downside potential, as less volume will enter the market in the months to come, said the investment banking arm of shipbroker Fearnleys.
Analysts at Fearnley have said the market is so weak as to be in "cancellations territory".
But no cancelled fixtures have yet been reported for June.
The US Energy Information Administration (EIA) has estimated global production is down 9% year on year due to US cuts.
