Asian imports of U.S. LPG fall, dragging down shipping rates

Higher prices of American propane have sunk demand in Japan and China

Freight rates for very large gas carriers that transport liquefied petroleum gas have dropped by 60% since the end of 2023. (Iino Kaiun)

RIONA GOMI, Nikkei staff writer

February 9, 2024 02:24 JST

TOKYO -- Shipping rates for Asia-bound liquefied petroleum gas have plummeted in 2024, touching a nearly three-year low, as higher prices for U.S. propane have sapped demand for the fuel.

Spot rates for shipments between the Middle East and Far East slid below $32 per tonne on Feb. 2, down roughly 80% from the end of 2023. While they rebounded above $48 on Wednesday, that is still roughly 60% lower than the end of last year.