Strong August market supported by Panama Canal congestion

The VLGC segment remained firm this month at strong levels, supported by growing U.S. propane output, favorable arbitrage into Asia, and extended sailing distances caused by congestion in the Panama Canal. Tight tonnage availability continues to underpin earnings strength, reinforcing a constructive short-term outlook.

Long-term infrastructural boost underway
From a longer-term perspective, infrastructure developments are equally supportive. Several U.S. export terminal projects are progressing, with phased capacity expansions expected from 2025 onward. These projects are set to unlock additional cargo volumes, sustaining vessel utilization and bolstering confidence in the long-run viability of the VLGC sector. The structural tightness in modern tonnage, combined with new trade infrastructure, positions owners favorably in the coming years.

Ammonia as viable shipping fuel inching ever closer
Sustainability also advanced meaningfully this month, with ammonia’s role as a zero-carbon fuel gaining momentum. Twelve bunkering demonstrations across nine global locations have now been successfully completed, including both ship-to-ship and truck-to-ship transfers. Full-scale engine trials confirmed tank-to-wake emission reductions of 90–95%, surpassing earlier expectations.

For EMF, these developments are particularly relevant, as our VLAC’s are designed for possible future conversion. As supply chains mature and ports establish regulatory frameworks, ammonia’s adoption is moving from pilot stage to operational reality, strengthening the case for early investment in flexible, low-emission shipping