VLGC freight rates have climbed to their highest levels in roughly 2.5 years, driven by a sharp tightening in available vessel supply. Ongoing congestion at the Panama Canal and elevated transit fees are pushing more ships onto the longer Cape of Good Hope route, materially extending voyage times and absorbing capacity. Anfil Gas sates 25% of VLGCs ballasting from the Far East to the US Gulf cargoes now diverting around the Cape of Good Hope. These extended roundtrip voyages have led to a tightening of the VLGC market, with limited vessel availability in both May and June.

At the same time, effective fleet availability remains constrained, as a meaningful portion of vessels are tied up in Iranian trade, floating storage, or drydock, leaving a reduced pool to service steady export volumes from the US Gulf. Unless additional capacity re-enters the market, either from the Middle East or through newbuild deliveries, the current supply-demand imbalance is likely to keep rates elevated in the near term.