Weight of Freight: VLGC troubles to persist through the rainy season at Panama Canal
Weight of Freight: VLGC troubles to persist through the rainy season at Panama Canal
As draught restrictions ease with the start of a much-awaited rainy season in the Panama Canal, difficulties are likely to persist for very large gas carriers (VLGCs) as other shipping markets move back to the route and escalate competition for transit slots.
Listen to Andres Pacheco, Analyst at the LPG Trading desk for Spain’s Repsol, and Yohanna Pinheiro, LPG Freight Market Reporter, discuss how increased competition to transit the Panama Canal and other market drivers will shape the costs of shipping LPG.
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Key topics covered
- Competitive advantages of the Panama Canal route in US-Asia routes for VLGCs
- Details of the Panama Canal booking system and slot auction price trends
- Effects of eased restrictions at the canal in heightening competition for slots among other markets
- Weather outlook and possible La Nina effects in the markets
- Long term projects to alleviate transits at Panama Canal
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Red Sea attacks hit second ship
Red Sea attacks hit second ship
New York, 7 July (Argus) — A second Liberia-flagged vessel transiting the Red Sea was attacked today, with two crew members missing and two injured in the latest incident, according to maritime security firm Ambrey. The dry bulk carrier, which has not yet been named, was adrift off the coast of Hodeidah, Yemen, following the attack. Yemen-based Houthi militants earlier Monday claimed responsibility for a 6 July attack on the Liberia-flagged Magic Seas dry bulk carrier approximately 62 nautical miles west of Hodeidah, a Houthi-controlled part of Yemen. The vessel began taking on water and was subsequently abandoned by its crew. While Houthi rebels have not yet claimed responsibility for the latest attack, Ambrey reports the attack meets the "established Houthi target profile as the listed beneficial owner appears on open-source platforms to have called Israel". The vessel attacked on 7 July was transiting the Red Sea north bound in when it was approached by two skiffs and unmanned aerial vehicles, with the vessel's armed security team returning fire, Ambrey reported. The vessel's engine has been disabled and it has started to drift, according to Ambrey. The UK Maritime Trade Operations has advised vessels to transit the area with caution. Ambrey recommended vessels reduce deck crew movements and bridge manning to a minimum while operating in the vicinity. Israeli fighter jets struck Houthi-controlled infrastructure in Yemen overnight, targeting ports and a power plant used in the group's military operations, the Israel Defense Forces said Monday. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Japanese firms advance LCO2/methanol carrier project
Japanese firms advance LCO2/methanol carrier project
Tokyo, 3 July (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) and shipbuilder Mitsubishi Shipbuilding have made progress in developing an ocean-going liquified CO2 (LCO2) and methanol carrier, which would play a key role in establishing the country's carbon capture, utilisation and storage (CCUS) value chains. Mol and Mitsubishi have obtained approval in-principle (AiP) from Japanese classification society Class NK for their design concept of a LCO2/methanol carrier. The vessel would ship CO2 out of Japan and deliver CO2-based synthetic methanol (e-methanol) on return voyages to the resource-poor country, the companies announced on 30 June. The AiP certifies that the basic design of the vessel meets international regulation standards, such as technical requirements, as well as relevant safety restrictions covering the transportation of dangerous chemicals and liquefied gases in bulk. This is the world's first issuance of an AiP for a LCO2/methanol carrier, Class NK said. The approval is a major step forward for the companies, which hope to develop the vessel for commercialisation. The target date for its commissioning is still unclear. Mol expects the carrier to help meet Japan's growing demand for CO2 exports and e-methane imports with higher transport efficiency, unlike the use of a dedicated vessel for CO2 or methanol, which results in empty-cargo operation on half of the trips. E-methanol can be produced using CO2 and renewable hydrogen, which will contribute to decarbonising a variety of industries including the maritime shipping sector. Mol has previously invested in US synthetic fuel (e-fuel) producer HIF Global, while working with Japanese refiner Idemitsu and HIF subsidiaries HIF USA and HIF Asia Pacific to develop supply chains for synthetic fuel and e-methanol as well as CO2. HIF plans to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay by using green hydrogen and CO2, Mol has said. CCUS value chains would help fossil fuel-reliant Japan reduce its greenhouse gas (GHG) emissions by 60pc by the April 2035 to March 2036 fiscal year and by 73pc by 2040-41, against 2013-14 levels, before achieving the net-zero emissions by 2050. The Mol group, for its part, aims to reduce emissions intensity in transportation by 45pc against 2019 levels by 2035, as it works towards overall net-zero emissions by 2050. Japan's GHG emissions totalled 1.017bn t of CO2 in 2023-24 , down by 4.2pc from a year earlier to the lowest in 34 years, according to the country's environment ministry. This also reflected a 27pc decline against a 2013-14 baseline. By Japan Newsdesk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia’s BHP charters ammonia-fuelled carriers
Australia’s BHP charters ammonia-fuelled carriers
Sydney, 2 July (Argus) — Australian miner BHP and China's largest shipping company Cosco have signed a deal to charter two ammonia dual-fuelled Newcastlemax bulk carriers, expected to be delivered in 2028, BHP announced today. The vessels will be used as part of BHP's 255mn-265.5mn t/yr iron ore trade on shipments between Western Australia (WA) and northeast Asia, the miner said on 2 July. Ammonia-fuelled transport will cut greenhouse gas (GHG) emissions by 50-95pc per voyage compared with traditional bunker oil, BHP said. BHP will continue to work on an ammonia bunkering plan in WA ahead of delivery, it said. Several companies are eyeing blue and green hydrogen opportunities in the Pilbara iron ore mining region to meet expected maritime demand. Cosco in January ordered eight Newcastlemax bulk carriers with methanol- and ammonia-ready class notation, allowing for bunkering using either fuel once an engine is selected. The Pilbara region's proximity to offshore gas fields and local port authority Pilbara Ports' status as the world's largest bulk operator has led firms including blue ammonia developer NH3 Clean Energy to plan bunkering facilities in WA. Norwegian firm Yara, which operates the 800,000 t/yr Pilbara ammonia plant, is exploring carbon capture and storage deals to cut its GHG emissions, while jointly developing a 10MW, 640 t/yr green hydrogen facility at the site due to come on line in late 2025 . Danish investment fund CIP's Murchison Green Hydrogen project was awarded A$814mn ($535mn) in federal government production credits in March for a proposed green ammonia export facility expected to commence operations in WA's Mid West region in 2032. Ammonia bunkering on the WA-China iron ore corridor could meet up to 5pc of total shipments annually by 2030 , but this would require 23 vessels operating around 70 Newcastlemax voyages by 2028, according to a 2023 Global Maritime Forum feasibility study. Fellow member of the "big four" iron ore producers in Pilbara Australian miner Fortescue signed an initial agreement with Cosco in 2024 for green ammonia-powered vessels . It signed a chartering agreement with shipowner Bocimar in April 2025 for an ammonia-fuelled carrier to be delivered by late 2026. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mideast Gulf VLCC rates halve as ceasefire holds
Mideast Gulf VLCC rates halve as ceasefire holds
London, 27 June (Argus) — VLCC freight rates on key routes have fallen sharply since a ceasefire between Israel and Iran was announced on 24 June, with the Mideast Gulf to China route dropping 50pc in just three days. Rates on the Mideast Gulf to China route — a bellwether for the VLCC market — surged to a 2.5-year high of WS110 ($25.70/t) on 23 June, following US strikes on three nuclear facilities in Iran the previous day. Charterers remained active during the spike, securing vessels at elevated levels. Kuwait's KPC booked two ships for Asia-Pacific delivery — one at WS110 and another at WS120 — but both deals failed to hold after the ceasefire was announced. Since then, rates on the route have fallen by at least WS10 ($3.50/t) a day, settling at WS55 ($12.85/t) on 26 June. The pace of decline may slow as rates approach pre-conflict levels. With no direct impact on crude supply or infrastructure, freight rates are likely to revert to previous market levels. A similar pattern emerged in October last year, when Iran launched more than 200 missiles at Israel. Rates on the same route rose by over 13pc to $14.10/t within three days, according to Argus assessments, before easing back to just above pre-conflict levels as tensions subsided. Before the latest escalation, the Mideast Gulf to China route was nearing a year-to-date low, weighed down by weaker Chinese crude demand during refinery maintenance season. Higher official formula prices for Saudi crude also curbed buying interest, prompting Chinese refiners to turn to Latin American alternatives — freeing up tonnage in the Mideast Gulf. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
