Shipping Firms Halt Rate Quotations for Large Vessels Amid LPG Shortage Nagpur: The ongoing West Asia crisis has led to a significant disruption in the shipping industry, with major firms ceasing to provide rate quotations for large vessels transporting crude oil and liquefied petroleum gas (LPG). Industry insiders indicate that this shortage of vessels is exacerbating the challenges of securing reliable supply chains for essential commodities like cooking gas. Even for companies seeking to source LPG from regions outside West Asia, the scarcity of available ships is creating logistical hurdles. Under time charter agreements, which typically involve long-term rentals of ships for periods ranging from a year to several years, the availability of vessels has become increasingly constrained. Some companies are now offering ships on a voyage basis, but the associated costs have surged dramatically. This has delayed efforts to diversify LPG supply routes, according to industry sources. Currently, over 3,000 ships are reportedly stranded at the Strait of Hormuz, further complicating the situation. The US has emerged as a potential alternative source for LPG, but the logistics of sourcing from there present significant challenges. A single ship from the US would not suffice, as companies require at least four vessels operating simultaneously to maintain monthly supply levels. The transit time for a ship to reach India is approximately 28 days, a source noted. While around 40 large ships are currently en route to the US, their final destinations will determine whether they can contribute to India’s LPG needs. The financial burden of securing ships has also escalated. Time charter rates, which typically range from $35,000 to $37,000 per day, have now surged to as high as $100,000.#us #strait_of_hormuz #west_asia #lpg #shipping_firms
