In a note to clients DNB Markets pointedout that levels have topped $93,000 per day on average, which represents a gainof 63% when compared to a trough that formed in May.
The European investment bank’s shippingresearch team said VLGCs are entering “high season”, which is why itsforecasters expect to see day rates hit $123,000 or even higher.
“We highlight that thereis still upside potential in rates to $123,000/day if the entire arbitragebetween US FOB prices (estimated $594 per tonne) of propane and Asia CIF prices($895 per tonne) are captured by the shipowner,” they wrote, adding:
“If we in addition assumethat the pre-paid terminal fees are in potential earnings for VLGC owners, wesee the theoretical ceiling in rates to be $155,000 per day.”
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