High Freight Costs Force Asian Buyers to Cancel U.S. LPG Cargoes
Malaysia Boosts Domestic Gas Use as Power Demand Hits Record Highs What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The Middle East supply crunch has led to soaring freight rates to ship liquefied petroleum gas (LPG) to Asia from other regions, prompting some buyers to cancel U.S.
Buyers have so far canceled at least two cargoes of LPG, the main cooking fuel in India and a key petrochemicals feedstock in China, which were previously slated to depart from the U.S.
Gulf Coast in June, sources with knowledge of the matter toldBloombergon Thursday.
Buyers are also in discussions to cancel additional cargoes as the high freight costs eat into the margins of the LPG importers, according to Bloomberg’s sources.
Buyers in Asia, including top energy importers China and India,have turned to U.S.
LPGto partially replace the supply lost from the Middle East.
LPG exports from the Persian Gulf supplied 92% of India’s and 26% of Southeast Asia’s imports in 2025, according todataby Vortexa.
With Middle Eastern exports now constrained, the U.S.
is sending higher volumes of LPG, propane, and butane to Asia.
“As uncertainty persists over Middle East Gulf LPG production and exports, US LPG is likely to remain firmly positioned in the Asian markets at least through May – H1 June,” Anna Zhminko, associate market analyst at Vortexa, said at the end of March.
However, the soaring freight rates are now easing demand for U.S.
LPG cargoes, according to Bloomberg’s sources.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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