Much of VLGC trade to the US poised to take canal route

Very large gas carriers (VLGCs) are expected to seize the opportunity of a shortcut to Asia provided by the widening of the Panama Canal.

But the shortcut could add to a downturn in day rates that is expected to begin this year as time savings add to vessel supply.

The widened locks of the Panama Canal will allow VLGCs to pass through the waterway for the first time, and growing US export capacity and a robust market for shipments to Asia is likely to makes LPG a key beneficiary.

LPG