Volatile month for LPG shipping as trade tensions stir market

The VLGC and LPG markets experienced significant volatility throughout April, shaped by geopolitical developments and trade tensions.

The month started quietly for the VLGC market, with stable sentiment. However, escalating US–China trade tensions led to a sharp market correction mid-month, creating significant volatility and temporarily weakening rates to levels not seen in years.

VLGC comeback underway as tariffs are eased
Despite the turbulence, the market showed resilience. By the end of April, VLGC rates had bounced back close to $40,000 per day on the Houston–Chiba route, following a temporary easing of tariff measures.

In regulatory developments, the International Maritime Organization finalized a landmark climate agreement, setting legally binding targets for shipping to achieve net-zero emissions by 2050. The agreement introduces carbon pricing from 2028 and rewards ships exceeding emission targets with tradeable credits. For modern, eco-efficient fleets, such as the EMF’s fleet and VLACs in particular, these regulations are clearly advantageous, positioning green vessels competitively as carbon costs are introduced.

Successful Rotterdam ammonia bunkering project
On the ammonia side, the Port of Rotterdam completed its first large-scale ammonia bunkering pilot successfully. This marks a major step for infrastructure readiness, confirming that ammonia can be safely transferred under operational conditions. As the second-largest bunker hub globally, Rotterdam’s progress signals growing momentum toward the commercial viability of ammonia-fueled shipping and supports future prospects for the VLAC segment.