BW LPG Limited announced on February 10, 2026 that it has signed two new three‑year time‑charter‑out agreements for its VLGCs BW Tucana and BW Yushi. The contracts, which began in January 2026, increase the company’s fixed‑rate time‑charter‑out coverage to about 35% of its fleet capacity and carry an average daily hire rate of USD 43,500 for 2026.
The new agreements are part of BW LPG’s strategy to raise its time‑charter coverage toward the targeted 40% level, providing greater earnings stability and downside protection while maintaining spot exposure to a growing VLGC market. By locking in higher‑than‑average rates, the company can better hedge against volatile spot freight rates and improve cash‑flow predictability for the coming year.
This development enhances BW LPG’s integrated logistics model, strengthening its competitive position against smaller rivals that rely solely on spot freight. The contracts also support the company’s broader goal of expanding its time‑charter portfolio, which has historically delivered robust realized profits and contributed to the firm’s resilient dividend policy.
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