Is there a ceiling to VLGC freight rates? in International Shipping News 06/05/2026 D uring the last two months that the Middle East Gulf conflict has been going on, we have seen record repositioning of the mainstream VLGC fleet toward the US Gulf Coast, peaking at 150 vessels mid-March. As of April 30, the count of ballast VLGCs en-route to the USGC has returned to the January 2026 average, as US LPG exports reached a dataset high this April, at 2.8mbd. Despite large swings in vessel availability, BLPG3 (USGC-to-Chiba) freight rates still continue to widen and the question now becomes whether there is a limit to this upside. Pull from Asia strengthens, Panama congestion rises US LPG exports to Asia reached a dataset record this April at 1.7mbd, rising 21% m-o-m. Continued tightness in MEG volumes has structurally strengthened US market share across Asia into June, as we highlighted previously. Notably, US LPG exports pointed to Northeast Asia (NEA) strengthened by 23% m-o-m, setting a seasonal record this April at 1.1mbd. Almost every 10th US LPG cargo for NEA sailed around the Cape of Good Hope (COGH) in April due to growing congestion at the Panama Canal. An adjacent buildup of laden oil tankers north of the canal has also contributed to a sizeable congestion for VLGC carriers compared to prior months. In April, 40% of US LPG-laden vessels headed to Asia have sailed around the COGH. Meanwhile, auction costs for Neopanamax lock transits tracked at $1.076mn on April 29, reflecting nearly a 4x rise since the MEG conflict start (Argus). With that, BLPG3 (USGC-Chiba) freight rates continue to climb upwards, having peaked to late-2023 levels of Panama Canal draught-period at $244.8/t on April 29. Given demand for US LPG cargoes is firm, global buyers relying heavily on US volumes, congestion at the Panama Canal showing no ease, and some US-origin voyage times extend by 20+ days (due to COGH) freight rates will likely remain elevated. Outlook for US LPG supply remains s