China’s imports of US LPG continues to support VLGCs

Growing LPG demand from China and India is driving the recent surge of VLGC newbuilding orders at Far East shipyards, according to Ralph Leszczynski, head of research at Banchero Costa (Bancosta).

This demand is particularly affecting the LPG trade from the US to China.

“After being near zero during the peak of the trade war in 2019, [the] LPG trade from the US to China skyrocketed in 2020, to the point that the US was the number one top exporter of LPG to China last year, accounting for about a quarter of China’s total LPG imports,” he said.