VLGC rates fall below $25 per tonne

VLGC rates fall below $25 per tonne for first time since November 2009

News ID: 66349

Date: 10 July 2016 - 10:15

According to MANA,SPOT rates of very large gas carriers on the benchmark Midde East-Japan route have dipped below $25 per tonne for the first time since November 2009, according to the Baltic Exchange, weighed down by a large number of newbuilding deliveries and soft tonne-mile demand.
Then in 2017, some 29 are expected to hit the water, followed by another 13 in 2018 and 2019.
Unsurprisingly, there are concerns over the fate of the freight market buckling under the weight of all these new vessels.
Moreover, current spot rates do not instil a huge amount of confidence over freight market prospects.
Some experts, including Poten & Partners' consultant Tom Nash, have suggested a low of $15 per tonne could materialise.