On Tuesday, global energy and commodity price reporting agency Argus announced it launched ten new freight price assessments for liquefied petroleum gas (LPG) tankers.
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LPG Freight Prices
Particularly, these prices respond to market demand for greater transparency in the growing and increasingly complex global trade in LPG; which indeed comprises butane and propane.
As the company notes in a media release, the US dominates the global LPG export market. Also, increasing amounts are flowing from the US Gulf and Atlantic coasts to destinations in Europe and South America; mainly, driven by demand in the residential and autogas sectors.
Accordingly, Argus noted that it worked with industry participants to develop prices that accurately reflect freight costs for LPG exports; particularly, from the US to Brazil, Chile, Peru, Morocco, and northwest Europe. Thus, rates are already available for massive gas carriers (VLGCs) and medium gas carriers (MGCs).
Argus on the decision
Argus also launched VLGC and MGC freight rates on the Ras Tanura to New Mangalore route – Saudi Arabia to India. Thus, these rates will support participants engaged in the swelling LPG trade between the Middle East and the sub-continent.
Accordingly, Argus Media chairman and chief executive Adrian Binks said in a media release; “Indeed, the LPG industry seeks to understand better and manage its exposure to volatile freight costs. Also, these assessments will help it by both improving overall transparency and providing necessary pricing tools on the growing trading volume; from the US and the Middle East.”
