Another Hormuz rate bonanza bites the dust as VLGC upside unwinds
- Baltic Exchange’s US Gulf-Japan VLGC index is at $85,138 per day, down 58% vs May 26 peak to lowest level since April 8, but still almost triple index level one year ago
- Plunge in oil pricing since Hormuz tensions have eased has led to lower competitiveness of US LPG in Asian markets
- More VLGCs in ballast are transiting the Strait of Hormuz inbound, a mix of non-sanctioned ships to the UAE and VLGCs sanctioned by the US for Iranian service
The Hormuz crisis VLGC rate boom was great while it lasted, and rates are still far above where they were a year ago, but as in other segments, the froth has come off
