VLGC spot rates have hit their highest levels for 10 months, propelled by huge levels of Indian gas imports and subsequent port congestion.
Norwegian investment bank Cleaves Securities reported rates up 8% week-on-week to $44,000 per day on average.
"Sentiment is positive with continued congestion in discharge ports in both the Far East and India, as well as increased delays both north and south-bound in the Panama Canal," said head of research Peter Michael Christensen.
The Baltic Exchange's Middle East to Asia route assessment was $67 per tonne or $46,500 per day on Thursday, 48% up from the same time last month and the biggest number since the end of January.
VLGCs heading from Houston to Chiba in Japan were also up 48%, at $52,050 per day.
S&P Global Platts reported massive levels of LPG imports in India to meet festive season demand.
This has caused serious congestion in terminals, with some VLGCs forced to wait more than two weeks to discharge gas, broker reports showed.
"There are delays and congestion at the ports. We have been seeing huge imports in the Indian market. The ports are getting busy on the discharge due to the volume of imports amid a rise in domestic consumption," an Indian shipping source told Platts.
Domestic use in India is on the rise even while prices are on the up. Cheaper imports are seen as the solution.
Fixing not easy
One broker said it is not easy to fix a ship coming out of India currently, due to the delays.
A total of 13 VLGCs were waiting at Indian terminals during the third week of November.
They were carrying 624,100 tonnes of LPG cargoes.
Terminals included Mumbai, Haldia, Pirpau, Visakhapatnam, Kandla and Mangalore, fixtures showed.
BW LPG's 82,291-cbm BW Birch (built 2007), carrying propane and butane from the Middle East, has been waiting off Haldia for more than two weeks, according to fixture and Platts cFlow trade data.
Brokers said sentiment was bullish. "While the Persian Gulf-Chiba route might be losing steam, I think Houston-Chiba will keep going," a broking source told Platts.
Panama Canal waiting times were assessed at up to 15 days for south-bound trips.
India's LPG consumption hit nine-month highs at 2.49m tonnes in October, as the country prepared for Diwali in November, according to data from the Petroleum Planning and Analysis Cell.
