Oversupply of LNG carriers causes lowest rates in five years

Oversupply of LNG carriers causes lowest rates in five years

London: A slew of LNG carrier deliveries in 2014 has helped spot rates for LNG carriers fall to the lowest level seen in five years, reports say.

Thirty-four new LNG carriers were delivered in 2014, according to data from the International Group of Liquefied Natural Gas Importers (GIIGNL).

Fleet capacity grew year-on-year by about 10% (5.48m cbm) in 2014, and continues to outstrip LNG trade growth.

Spot rates have been declining since mid-2013 and in the Asia-Pacific basin are now around $38,000 per day, and $37,000 per day in the Atlantic, according to Platts data.

These are the lowest rates seen since 2009, when 42 new vessels were delivered. Asia-Pacific spot rates fell to $25,000 per day in June 2010, and $31,000 per day in the Atlantic Basin in July that year, Platts said.

The current LNG orderbook stands at 144 vessels of between 100,000 and 199,999 cbm, according to data from VesselsValue.com. Twenty-three vessels are expected to be delivered this year, with 42 following in 2016.

 

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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    Oversupply of LNG carriers causes lowest rates in five years |
    April 24, 2015 at 9:49 am

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