Page 38 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - SEPT 2025

Shipping markets

fall of LPG cargoes from the Middle
East. Furthermore, long-haul voyages
from the US to Asia absorb considera-
bly more capacity compared to Middle
Eastern exports, tightening global fleet
availability and amplifying freight mar-
ket volatility in the short term.

In a recent public statement, you
stressed that investing in
other parts of the supply chain
can help mitigate volatility.
What investments is BW LPG
pursuing at the moment?
Over the last years, we have substan-
tially expanded our LPG trading activity
with BW Product Services, where
we expect to trade 6 million metric
tonnes of physical LPG this year.
In addition, we explored opportunities
to invest further along the supply chain
and expand into LPG infrastructure
by teaming up with local Indian partners
in order to build an import terminal out-
side Mumbai. Initially, we were supposed
to invest a relatively modest amount
of equity in the range of USD 10-15 mil-
lion, but the project, like many greenfield
What are the reasons behind infrastructure developments, proved
the ongoing volatility in the LPG to be quite complex and required
spot freight market, and what substantial attention and time from
are the short-term prospects? management and directors. Given
The VLGC market is one of the most the increasing geopolitical volatility
volatile segments in shipping, and the frontline exposure of our ship-
primarily due to the dynamics ping and trading operations to these
of the US LPG exports. It is a highly developments, we ultimately decided
dynamic export market driven to exit the terminal project. This decision
by the price difference between allows us to concentrate fully on our core
the US and the importing markets business areas, i.e., shipping and trading,
in Asia, as well as to a certain degree which remain our primary value drivers.
in Europe. Although the price difference At present, we have no plans to expand
allows for exports most of the year, further into other parts of the LPG
there are periods when incremental supply chain. We believe that focusing
spot cargoes are either in short supply on our core competencies is the most
or in surplus, influenced by factors like prudent approach in the current envi-
weather, geopolitical developments, ronment.
the number of available transit slots
in the Panama Canal, etc. Given the What impact is President Trump's
relatively small size of the VLGC sec- energy policy expected to have
tor, even a limited number of additional on LPG carrier demand?
or withdrawn cargoes can significantly It’s important to keep in mind that
shift market sentiment and trigger the US LPG production and exports
sharp rate fluctuations. have increased consistently across
At the moment, the Israel-Iran con- successive administrations since Pres-
flict is driving spot rates up, as the US ident Obama. Moreover, in the US, pri-
is the only LPG exporter that can vate companies explore, drill, and export
mitigate the risk of a potential short- hydrocarbons based on professional

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