LNG shipping market recovery begins now: Stanchart

Recovery in the LNG carrier market begins now and he is "cautiously optimistic" for the future, according to Standard Chartered shipping finance head Nigel Anton speaking at the Asian Logistics and Maritime Conference in Hong Kong.

While he noted that supply growth is still high, factors such as fact that 50% of newbuilding orders have not even begun construction and the high possibility of cancellations at the Korean yards, where some 65% of LNG carrier newbuilding orders are concentrated, may help mitigate this. "If cancellations at the yards do occur that will enhance the probability of a quicker recovery and address the issue of a large order book," he said.

In addition, there is also the possibility that demand may be able to keep up with supply. "We think there is sufficient LNG carrier demand in the next five years that can absorb the current oversupply and the order book and may even need some 40 newbuilding orders in the future," Anton said.

He also noted that LNG carriers would continue to be driven by both volume and ton-mile. In the case of...Read more...

Source: seatrade-maritime.com