“Demand for LNG ships has shot up this year with orders coming to US$ 4.6 billion,” the Irish Maritime Development Office (IMDO) said in its Weekly Market Review, citing Lloyd’s List.
The IMDO’s report revealed the following:
“Twenty-three contracts for the building of new LNG carriers have been signed so far this year, at a rate of almost one a week. The interest of investors has been attracted by expectations that new cargoes will be introduced into the market once these new ships are in operation. The arrival of these ships will increase competition among shipping companies for cargoes. As a result the likelihood is that freight rates will continue to fall.
“Current spot rates are between US$ 46 000 and US$ 50 000 per day while one-year time charter rates are fixed at US$ 48 000 per day. These rates have decreased significantly since the beginning of the year and with the imminent arrival of new orders it is expected that they will come under further pressure.
“The live fleet is 398 ship and the global order book now stands at 128 ships according to Clarkson’s data. This will see a 32% increase to the existing fleet.
Adapted from press release by Ted Monroe