- We expect at least 6 newbuilds to enter the market this year
- The global LNGC fleet grew by 1 vessel to 428, the order book by 1 vessel to 133
- General vessel oversupply further reduced fleet utilisation to 85.28%, further deliveries could reduce it to around 80%
- However, the slight increase in layups was enough to lift the monthly average spot charter rate to $24,750/day, roughly in line with our 12-month target range of $25-35,000/day
- Steam-powered LNGCs struggle to improve their charter rate prospects in light of oversupply of newer DFDE/TFDE competitors
- Far Eastern LNG market in particular appears saturated with Japan and South Korea returning to nuclear
- Bright spot offered by emerging Southeast Asian buyers such as India, Pakistan and Thailand, with significant energy supply gaps to be filled
- Innovative supply models are being tested but will not necessarily benefit the spot charter market
by Alexander Wilk // 21 July, 2016
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