Recovery expected in Q2 as arbitrage conditions enhance
The VLGC market remains sluggish despite increased activity in the West. Although a few more transactions are expected in February before the market shifts to March fixtures, the list of positions for the remainder of February remains quite full.
According to Clarksons, earnings on the standard Houston-Chiba (Japan) route have dropped by 12% week-on-week, settling at around $30,000 per day. However, Fearnleys predicts a recovery in the second quarter, expecting earnings to reach $40,000 per day, driven by more favorable arbitrage, rising annual export volumes, and seasonal demand trends.
Source: Clarksons Research and Fearnleys