Smaller vessels are the only sector in the Liquefied Petroleum Gas (LPG) shipping market expected to see an increase in freight rates according to global shipping consultancy Drewry.
In a statement released yesterday, the latest edition of the ‘LPG Forecaster’ showed that most vessel size segments were predicted to grow rapidly in fleet size which would keep LPG freight rates under pressure over the next two years.
However, small LPG vessels (1 000 to 5 000 cubic metres) would only experience minimal growth in fleet size leading to a recovery in rates.
“As fleet growth slows further from next year, rates will continue to improve and average [USD] $210 000 per month by 2019,” said Drewry’s senior analyst for gas and shipping, Shresth Sharma.