The piece discusses the sharp decline in liquefied petroleum gas (LPG) shipping rates as 2023 began.
VLGC spot rates soared to new highs above $125,000 per day in the fourth quarter of 2022, driven by robust demand in Asian and European markets.
However, the market experienced a significant reversal. VLGC rates began to slide in December and have been decreasing ever since, currently marked at around $55-60,000 per day.
Marsoft had anticipated this correction, having predicted in their Q4 2022 report that rates would spike temporarily before declining as arbitrage opportunities diminished. The sharp pullback from peak pricing to roughly half those levels represents a notable market shift in the early months of 2023.
This volatility reflects the cyclical nature of global LPG shipping markets, where seasonal demand patterns and trading spreads significantly influence rate movements.
