Denmark, Copenhagen – 22 December 2024.  

LPG freight rates surged this week, driven by increased activity in both the East and West. RT/C rates rose 21% week-on-week to USD 37,800/day, marking a nine-week high. According to Clarksons, the market is tightening due to limited vessel availability and a preference among charterers for larger ships, both factors driving rates higher.

In the East, January fixing has begun following ADNOC’s (Abu Dhabi National Oil Company) acceptances, with more ships expected to join the list next week. However, Eastern rates remain below Western levels, and limited availability suggests upward pressure on rates.

In the West, over a dozen vessels have been placed on subs (provisionally booked for cargo transport), reducing the position list to just two available ships for early January. Tonnage for late January is also tight, likely supporting current rate levels in the weeks ahead.

Source: Fearnleys Research