The global active LNGC fleet grew by 2 to 427 vessels whilst the order book has contracted to 132 vessels
General vessel oversupply and reduced fleet utilisation of c. 86% pushed monthly average spot charter rate down to $23,400/day, below our 12-month target range of $25-35,000/day
We expect 42 newbuilds to enter the market this year whilst lay-ups are not keeping pace with idle tonnage
Spreads between spot and long-term charter rates narrowed in both basins, reducing room for manoeuvre for ship owners
Japan and South Korea are increasingly shifting power capacity back to coal and nuclear, thereby reducing LNG demand since 2014; energy efficiency drive in Japan will help to restrain LNG demand in the future
Chinese LNG demand is highly uncertain – the 13th Five-Year-Plan emphasises domestic energy production over imports but gas production targets are ambitious and expensive
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