VLGC rates still quintuple 2025 levels but down from Hormuz crisis highs
- US Gulf-Japan VLGC index is at $161,804 per day, down 20% vs peak on May 26, yet up 120% vs late February, pre-crisis, and 4.8 times the index level a year ago
- VLGC owner stocks off recent highs but still star performers: BW LPG is up 64% year to date and 101% year on year, Dorian LPG is up 73% year to date and 110% year on year
- Spot rates are easing as US-Asia propane arbitrage tightens and more VLGCs are ballasting from the Middle East to the Atlantic basin
The VLGC sector is the last corner of energy commodity shipping that has held on to extreme rate gains from the Hormuz crisis. VLGC spot rates are finally starting to come down, but they’re still more than double February levels
