VLGC rates for voyages from the Middle East Gulf to Asia strengthened as ships ballasted to the US Gulf Coast for cargoes.
The Baltic Exchange's LPG index rose from $25.167 per metric tonne to $28.67 by Thursday. On a time charter equivalent basis, VLGCs are earning a little bit more than $17,000 per day at the current rates.
A Clarksons report noted that "VLGCs are ending the week on a firmer note with the segment seeing a bump in activity to the Far East."
A shipbroker says three cargoes for India are said to be looking for ships in Middle East Gulf currently.
But ship supply is tighter as more VLGCs are ballasting to the US Gulf Coast in hopes of taking part in strong cargo activity. Spot freight rates for the US Gulf-to-Asia voyage were done at "high $50s" per metric tonne thanks to seasonal heating and petrochemical demand.
US LPG exports have hit averaged over 1 million barrels per day this year.
"Lots of ships have ballasted West on spec, which is supporting the Baltic," the shipbroker said.
Another market source says there is risk of freight rates falling as prices for LPG in the Far East are lower in the second half of April than they are in the first half of April. Charterers may find it less economic to export, potentially reducing vessel demand.
"There was a burst of demand for first half April, but the second half is looking a bit flimsy," the source said. "We are not at level of cancellations yet, but it could get there."
