Tonne-mile growth and tight vessel supply sustain constructive VLGC outlook

Early month strength driven by Atlantic tightness
The VLGC market remained firm through February, supported by tight vessel availability in the Atlantic basin and congestion-related delays. Fixing activity and fleet deployment patterns pointed to healthy utilisation across the segment.

Improved fixtures support sentiment
Market activity improved as the month progressed, with owners maintaining solid forward cover. Periodic lulls during the month were largely seasonal, reflecting the Chinese New Year window and industry activity around International Energy Week rather than any deterioration in underlying fundamentals. Elevated Panama Canal costs continued to favour longer Cape routings, reinforcing tonne-mile demand and supporting vessel employment.

Underlying fundamentals remain constructive
Medium-term drivers remain supportive. Robust LPG export growth from the United States and Middle East, combined with firm import demand from Asia and India, continues to underpin the segment. Broker commentary also indicates that tonne-mile demand has broadly kept pace with, or exceeded, fleet growth in recent periods.

Fleet evolution points toward ammonia capability
Ordering activity continues to show growing interest in ammonia-capable VLAC designs, reflecting expectations for future ammonia trade development. While some seasonal normalisation in rates may occur, February confirmed that the VLGC market remains supported by structurally healthy trade flows.