Strong fundamentals support a positive outlook for the time ahead

The LPG market remained broadly firm through November as steady US Gulf exports, healthy Asian demand and evolving trade dynamics supported activity. Despite freight volatility, the overall backdrop reflected structurally tight supply, strong arbitrage fundamentals and continued long haul flows into Asia.

US Gulf exports stay elevated
Export volumes from the US Gulf were at high levels throughout the month. Ample propane and butane availability kept transpacific arbitrage open, offering consistent cargo flows into key Asian importers, notably India and China.

Freight movements driven by shifting trade routes
Panama Canal constraints continued to influence tonne-miles. Many US to Asia voyages opted for longer routing, which increased VLGC utilisation. In parallel, increasing flows from the US Gulf to India and China added distance to typical trade patterns, tightening available tonnage and supporting healthy freight levels through most of the month.

Market balance remains positive
Fleet growth stayed limited, and the combination of long-haul voyages, steady Asian demand and strong US supply kept the market well balanced. While intra month fluctuations occurred, the broader picture for November was one of firm fundamentals and supportive utilisation across the VLGC segment. We hold a positive outlook for the LPG market in the coming years, supported by strong underlying trade growth.