In 2025, fewer new LPG tankers were ordered than ever before. This was mainly due to tensions between the USA and China.
Newbuilding orders for LPG tankers of all sizes fell to a record low in 2025. Only 44 ships were ordered. This represents a significant decline compared to the previous year: a total of 157 new LPG tankers were ordered in 2024.
According to the latest monthly report from LPG (Liquefied Petroleum Gas) specialist shipbroker Grieg Shipbrokers, the high order backlog and ongoing trade tensions between China and the US have deterred shipping companies from investing in the LPG sector for most of 2025. Grieg – acquired by UK brokerage SSY in December 2025 – explained that this has led to a decline in newbuilding prices for LPG tankers. This was particularly noticeable in China and less so in Japan and South Korea. The reason for this was the Trump administration’s initially high port fees for ships built in China that call at the USA.
However, shipyards’ order books are fuller than ever before, with delivery dates well into 2028 for some shipyards and even up to 2029 or 2030 for others.
The uncertainty surrounding US tariffs also impacted the second-hand market for LPG tankers, with 43 vessels changing hands in 2025 compared to 77 in 2024.
Despite the trade tensions between China and the US, global growth in LPG exports fell by only 0.6% to 122 million tons. This is due to capacity constraints at US terminals and low additional exports from the Middle East, with the exception of Iran, which exported 870,000 tons more. Domestic trade in LPG fell by 8.5% in 2025, mainly in Asia, but Algeria also recorded declining volumes.
As in previous years, the new export volumes were largely attributable to long-haul shipments. In addition, the effects of the US trade war led to changes in trade patterns, resulting in a 4.3% increase in tonne-miles transported. India imported more liquefied natural gas from the US as part of broader trade negotiations, replacing some of the imports from the geographically much closer Middle East. Indonesia made a similar adjustment, increasing its liquefied natural gas imports from the USA by 1.1 million tons and reducing imports from the Middle East at the same time.
