New Panama Canal locks could weigh VLGC rates down

A record number of very large gas carriers (VLGCs) delivered in 2016 has pushed freight rates down to their lowest levels in six years. Now shipowners face the question of whether the opening of the new locks on the Panama Canal will force rates down even further.

Previously, only about one-fifth of the world’s VLGC fleet was considered panamax-capable. But the new locks will open the waterway to the entire VLGC fleet.