Narrowing arbitrage sends VLGC rates cratering to lowest levels since May
Seasonality is hitting VLGCs as US-Asia price differentials tighten, analysts say, while gas carriers are increasingly using the Cape of Good Hope to avoid the Red Sea and Panama Canal
Propane prices have been rising in the US while falling in China, analysts say, narrowing the arbitrage and hitting VLGC freight rates. Meanwhile, diversions around the Cape of Good Hope have risen sharply in December amid the Red Sea threat and Panama Canal woes