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Sonatrach
06.01.2021 kl 22:52 5079

TW i dag:

VLGC charter rates hit new high as 2021 opens on upbeat note!

Hot fixture reported as strong market shows no sign of slowing
Charter rates for VLGCs have kicked off the year on a high with a vessel being fixed at a very strong level.
Brokers said Zodiac Maritime’s 84,000-cbm LPG carrier newbuilding Durham has been fixed for 12 months at $1.6m per month, equating to a daily rate of $52,500. The charterer has yet to be identified.

The rate is significantly higher than that done on VLGCs being fixed for similar business in November and December, when deals were concluded at levels in the low to mid-$30,000 per day range.

In another deal, brokers said Singapore-based Cido Shipping has locked in its 82,000-cbm Kobai (built 2009) into a 15-month time charter with Hindustan Petroleum Corp. The rate is understood to be $45,000 per day.

Daily spot charter rates have tipped over the $100,000 mark for the start of 2021, up from fixtures seen in the high-$90,000-per-day range in early December.
Time charter equivalent rates for VLGCs in both the West and East are being quoted at $3m per month, levels not seen since August 2015.
One specialist VLGC broker described the rates as “extraordinarily high”.

He said charterers have been fixing up to two months ahead in the run up to the end of 2020 to be assured of securing tonnage. This compares to half that time in earlier months.

Specialist VLGC brokers said cold weather in the East is creating more demand with more US-loading vessels making longer voyages via the Cape of Good Hope or the Suez Canal due to ongoing delays with Panama Canal transits.
These have seen transit times extend out from two to eight to 10 days while ships wait for slots.

One said the lack of slots here for VLGCs looks set to become more acute due to changes being brought in by the Panama Canal Authority to its tiering system.
This looks set to limit the advance booking time for owners and operators of gas ships to a matter of weeks, making scheduling more complex.
He said this could help sustain rates in the longer term as vessels are forced to take longer-haul routes.

“It is a level of uncertainty which owners will now have to try to price into their economics,” he said.
Market players pointed to a lack of available tonnage and a “bullish sentiment” among VLGC owners.
Shipowners are content to hold out for high rates at the start of the year as they consider how to trade their fleet, one explained, rather than fix out their tonnage in a strong market only to see it re-emerge as a relet chartered out at a higher rate later.

An LPG broker commented that the strong market seen in the second half of 2020 had surprised with players possibly overestimating the Covid-19 demand destruction from Asian buyers and China in particular.
The market revival kicked off in mid-June with rates continuing to improve throughout the rest of the year.

Owners and brokers are optimistic that the strong rates may hold for some time into 2021. They pointed out that in addition to the longer tonne-miles, the VLGC orderbook is “manageable”.
Redigert 21.01.2021 kl 08:36

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