Printer Friendly

SPOT LNG SHIPING FLEET'S OPERATING LOSS US$230M THIS YEAR.

The pressure on LNG shipping spot rates will continue for another year on account of strong fleet growth. However, rates should strengthen from 2019 as fleet growth slows and trade remains strong, experts said. Spot rates (East of Suez) for modern LNG vessels averaged $33,000pd in the nine months to September 2017, an increase of 5 percent compared with the same period last year. While current spot rates are enough to cover operating costs of around $15,000pd, they are still below breakeven, which ranges between $45,000pd and $60,000pd. Experts also calculate that the global spot fleet will make aggregate operating losses of USD 230m in 2017. Shipowners with substantial spot market exposure face continued challenges as Drewry expects pressure on the freight market to continue in 2018 on account of strong fleet growth.

COPYRIGHT 2017 Asianet-Pakistan
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Pakistan & Gulf Economist
Date:Nov 5, 2017
Words:163
Previous Article:RUSSIA'S NOVOROSSIISK BUNKERS FUEL DISCOUNT TO ISTANBUL WIDENS.
Next Article:PANAMA ANNOUNCES INNOVATIVE NEW TOOL TO ENCOURAGE EMISSIONS REDUCTIONS.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters