VLGCs in tariff tailspin as spot rates nosedive
- Freight rates on the three main VLGC routes have cratered since China announced 34% reciprocal tariffs on all US goods, which increased on Wednesday to 84%
- Baltic Exchange’s BLPG index fell 39% on Wednesday, its steepest-ever, single-day percentage drop
- Freight rates in the Middle East and US Gulf have reached opex levels, brokers say
- While spot rates are plummeting, a reshuffling of routes could ultimately boost VLGC tonne-miles
Very large gas carriers are feeling the impact of tariffs due to their high exposure to US-China trade. Freight rates across the three main shipping lanes have cratered since Monday, with the Baltic Exchange BLPG Index down more than 51%. However, a reshuffling of routes that leads to more US LPG going to India could ultimately support rates
