high|Multi-Factor04 Mar 2026, 11:00 UTC

VLGCs Eye USGC Alternative as Middle East LPG Supply Tightens Amid Gulf Tensions

Suspension at Saudi Arabia's Juaymah Terminal at Ras Tanura, triggered by Middle East Gulf tensions, has pushed Far East propane and butane swaps to their highest levels since February 2023, signaling near-term LPG supply tightness. VLGC operators and LPG shippers should actively assess rerouting cargo procurement toward USGC origins, accepting longer voyage distances and higher freight costs. Far East buyers face compounding pressure from both commodity price spikes and elevated tanker rates in the coming weeks.

Rate Direction

Rates up +20.00%

Time Horizon

weeks

Confidence

65%

Routes Affected

Persian Gulf / Strait of Hormuz / Indian Ocean

Ports / Terminals

Ras Tanura / Juaymah Terminal / Fujairah

Source

https://www.hellenicshippingnews.com/vlgcs-could-turn-to-usgc-as-lpg-supply-tightens/

published 04 Mar 2026, 11:00 UTC

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