VLGC rates will not be as strong as suspected, as rates and pricing arbitrage appear to have become uncoupled, veteran analyst Omar Nokta says.
He said the end of Panama Canal disruptions means the market is finally feeling the impact of last year’s newbuilding deliveries, creating a situation in which the $310 per tonne spread between LPG prices in the US Gulf and Asia — the highest this year — is no longer boosting freight rates in the same way.
