English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Gas capacity shortage looms says Drewry

PRESS RELEASE:

August 26, 2014: Continuing weak demand and excess tonnage are expected to depress LNG shipping earnings in the near term. But longer term the sector could face vessel shortages as ordering slows and liquefaction projects come on stream, according to the LNG Shipping Market Annual Review and Forecast report published by shipping consultancy Drewry.

Presently, the LNG shipping market faces tough times. The fleet continues to grow even though its trade has declined and LNG supply has stagnated. The global LNG trade fell for the second consecutive year in 2013 by 1%, as many liquefaction sites faced unplanned shutdowns, which resulted in tight supplies and higher prices.

Japanese imports rose just 1% in 2013 and are expected to stagnate as the country looks to restart its mothballed nuclear power plants, in the face of rising fossil fuel import costs and a depreciating currency. Imports to Europe declined 23% due to lower demand and increased reliance on piped gas. Likewise, imports by the US and Canada fell 45% and 42% respectively because of surplus natural gas production. Meanwhile, insignificant additions to global liquefaction capacity and unplanned shut- downs led to a tight LNG supply during the year.

Despite weak demand, LNG vessel capacity rose 5% in the 18 months to June 2014 to 56 million cubic metres. Drewry is forecasting that fleet growth will accelerate at an annual rate of 8% both this year and next to reach 66 million cubic metres by the end of 2015.

"A deadly combination of expanding vessel fleet, limited cargo availability and falling trade caused short-term freight rates for conventional LNG carriers to decline through 2013 and the first half of 2014," commented Drewry's lead gas shipping analyst Shantanu Bhushan. "Although there are plans to add 64 billion cubic metres per annum of liquefaction capacity during 2014-15, major concerns for shipowners are the timely completion of these projects, the possible restart of Japanese nuclear power plants and the fast rising vessel fleet. As a result, the outlook for unchartered vessels over the next 18 months is not favourable and we expect spot and short-term freight rates to remain under pressure."
However, demand is expected to recover strongly in the latter part of the decade as new production comes on stream, on completion of various projects under construction in Australia and North America.

Bhushan elaborated: "Drewry cautions shipowners that the anticipated rise in cargo traffic may take them by surprise. We expect that the LNG shipping industry will need many more vessels in the latter half of the decade than are currently on order."

 

More News

Written on 20/06/2017, 21:31
us-500-million-for-hybrid-airshipsPARIS, June 20, 2017. Hybrid Air Freighters (HAF) has signed a Letter of Intent to purchase up to 12 Lockheed Martin Hybrid Airships for US$500 million...
Written on 20/06/2017, 19:03
ethiopian-adds-more-b777-freightersLE BOURGET, France: June 20, 2017. Ethiopian Airlines is adding to its fleet of six B777 freighters with the purchase of two more with a list price of...
Written on 19/06/2017, 13:44
freightweek-news-update-week-25ISTANBUL: June 21, 2017. Turkish Cargo has begun a weekly A310 freighter service to Paris CDG. Read more: new_freighter.pdf ABU DHABI: June 21,...
Written on 13/06/2017, 22:19
emirates-sky-cargo-begins-luxembourg-serviceDUBAI/ LUXEMBOURG: June 13, 2017. Emirates SkyCargo began its first weekly B777 freighter service to Luxembourg this week as part of its strategic...
Written on 13/06/2017, 21:31
cma-cgm-to-buy-maersk-s-mercosul-subsidiaryCOPENHAGEN/MARSEILLE: June 13, 2017. A.P. Møller – Mærsk has confirmed the sale of its Mercosul Line subsidiary to CMA CGM to avoid market dominance...
Written on 12/06/2017, 13:37
freightweek-news-update-week-24PORT ELIZABETH, NJ: June 15, 2017. The Ocean Alliance has begun its first weekly U.S. East Coast Loop 3 service with a call by the 8,700 TEU capacity CMA...
Written on 09/06/2017, 21:41
antonov-makes-last-minute-andean-liftMENDOZA, Argentina: June 07, 2017. Antonov used an AN124-100 in late May to move mining equipment weighing a total of 24 tonnes from Santiago, Chile to...
Written on 08/06/2017, 22:41
turkish-cargo-gets-the-word-out-and-the-business-inISTANBUL: June 08, 2017. Turkish Airlines has reported a gross profit of US$117 million on revenue of US$1.93 billion for Q1 2017 as the contribution...
Written on 08/06/2017, 20:37
customs-and-air-cargo-belgium-to-share-visionBRUSSELS: June 07, 2017. Belgian Customs and sector representative Air Cargo Belgium have agreed to "execute a common vision concerning the optimization...
Written on 08/06/2017, 19:40
schiphol-pharma-gateway-adds-abcAMSTERDAM: June 07, 2017. AirBridgeCargo Airlines (ABC) has become the second airline and 14th member of the Pharma Gateway Amsterdam (PGA) initiative...
Written on 07/06/2017, 15:47
ups-suspends-pick-ups-for-qatar-as-embargo-continuesATLANTA: June 06, 2017 UPS has informed its customers that direct import and export to and from Qatar is not be possible, following the decision by...
Written on 06/06/2017, 19:00
maskargo-boost-to-malaysia-ecommerceKULA LUMPUR: June 06, 2017. MASkargo has begun a five times weekly A330 freighter service between Kuala Lumpur International Airport (KIA), Kota Kinabalu...
Written on 06/06/2017, 15:51
delta-and-aeromexico-sign-transborder-agreementATLANTA/MEXICO CITY: June 06, 2017. Delta Cargo and Aeromexico Cargo have signed a sales, operations and marketing agreement to develop the transborder...
Written on 05/06/2017, 14:21
freightweek-news-june-05-09MARSEILLE: June 09, 2017. CMA CGM is to introduce a new box service linking the East Mediterranean, Djibouti, Gulf, Pakistan and India. Read...
Written on 31/05/2017, 21:02
big-jump-in-gross-profit-for-gefcoCOURBEVOIE, France: May 30, 2017. Gefco, the automotive logistics specialist owned by RZD Russian Railways, has reported a 1.3 percent increase in revenue...
Written on 31/05/2017, 15:32
bertschi-award-winning-tanks-head-westDURRENASCH, Switzerland: May 29, 2017. Liquid logistics specialist Bertschi has begun an 18-day movement of 82 ISO tank containers from Korla in Western...
Written on 30/05/2017, 21:52
new-logistics-center-for-tehran-airportTEHRAN: May 30, 2017. PressTV, owned by Islamic Republic of Iran Broadcasting, reports a Swiss and Dutch company will design, develop and construct the...
Written on 30/05/2017, 20:39
changi-reports-air-cargo-recordSINGAPORE: May 29, 2017. Air cargo throughput at Changi Airport rose 4.4 percent in April to 171,720 tonnes compared to the same period last year. For...
Written on 30/05/2017, 17:56
ups-links-with-sf-express-parentATLANTA: May 27, 2017. UPS and SF Holding, owner of SF Express, are establishing a joint venture to provide international delivery services from China to...
Written on 30/05/2017, 17:09
freightweek-news-may-29-june-02BEIJING: June 02, 2017. The Alibaba Group is to purchase 18 percent of Hong Kong-listed Lianhua Supermarket making it the second-largest shareholder of...

- powered by Quickchilli.com -