Q2 rebound anticipated as arbitrage improves

The VLGC market remains soft despite increased activity in the West. While a few more February deals are expected before the market transitions to March fixing, the position list for the remainder of February remains well-filled.

According to Clarksons, earnings on the standard Houston-to-Chiba (Japan) route declined by 12% week-on-week, settling at approximately $30,000 daily. However, Fearnleys expects a rebound in Q2, projecting earnings to reach $40,000 daily, driven by a more favourable arbitrage, higher year-on-year export volumes, and seasonal demand trends.