Lpg Trade News

Global waterborne LPG trade reached 28.2 million tons, 14.1% growth year over year, said Singapore-headquartered BW LPG.Global LPG trade continues to be driven by the U.S. waterborne LPG exports which grew to 10.5 million tons, up 21.8% year over year, said the  owner and operator of LPG vessels.Middle Eastern exports were down marginally by 0.6% year over year to 10.2 million tons. Exports from both Saudi Arabia and Iran fell; the decreased volumes were offset by increased exports from U.A.E and Qatar.In Q3, the increasing LPG export volumes were absorbed by Southeast Asia, Japan and Europe. Imports to China and India remained stable.LPG imports to Southeast Asia increased significantly by 51.7% to 2.9 million tons, driven by Indonesia, Philippines and Vietnam.

Trump administration trade tariffs on China will need to cease and India will have to rely more on U.S. LPG supplies for the world to clear the quantum leap expected for U.S. LPG exports, says a study.The study of global seaborne LPG trade flows using Kpler LPG cargo tracking data questions the global LPG market’s ability to grow fast enough to handle the tsunami wave of new LPG production expected from the United States in 2020 and 2021."The U.S. has become the largest LPG exporter in the world and now exports more LPG than the U.A.E., Qatar and Saudi Arabia combined. Enterprise Products alone exports more LPG than any other country…

U.S. liquefied petroleum gas (LPG) exports have grown year-over-year by 22% to 22.5 million tons year-to-date (YTD) and Middle East exports have grown on the same basis 3.5% to 22.6 million tons, said Dorian LPG.For the first time, U.S. and Middle East volumes were equal, said the owner and operator of modern very large gas carriers (VLGCs)."Our expectation is that the U.S. exports will grow faster than those from the Middle East. U.S. propane inventories continue to push towards the higher-end of their 5-year range, having reached 80 million barrels on July 26th, 21.4% higher than last year, which was almost equal to the percentage increase in exports," it said.North American export capacity continues to expand, further supporting global LPG trade.

The Very Large Gas Carrier (VLGC) freight rates started to recover towards the end of the first quarter as U.S. consumption reverted to seasonally lower levels pushing U.S. LPG prices down, widening the geographical LPG price arbitrage between the U.S. and the Far East.According to BW LPG, the owner and operator of liquid petroleum gas (LPG) vessels,  the recovery in VLGC freight rates was further strengthened by two occasions of fog and a temporary closure of the Houston Ship Channel due to fire and chemical spills.For 2019 we are optimistic that average VLGC rates will improve from the 2018 average of US$17,300 per day to a level above our cash break-even levels.

Seaborne LPG trade rebounded in the second calendar quarter of 2018 thanks to heavy lifting schedules in the Middle East and the United States, as well as an improvement in arbitrage economics towards the end of the three-month period, said Dorian LPG.After a lackluster first calendar quarter of 2018, exports from the United States peaked at approximately 2.7 million metric tons in May 2018, and total U.S. exports for the first half of 2018 were 4% higher as compared to the same period in 2017.Appetite for LPG in the East remained strong throughout the second calendar quarter of 2018 due to robust consumption within both the retail and petrochemical markets.

Among the different size categories of LPG ships, the small vessel segment is expected to be the best performer in 2018 while Handysize vessels will be the worst, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. The LPG shipping market is currently oversupplied with vessels (with the exception of the small segment 1,000-5,000 cbm), as a result of strong fleet growth during the last three years. The global LPG fleet expanded at an annual average rate of 17% in 2015 and 2016, and is expected to grow by 9% in 2017. However, shipowners can now breathe a sigh of relief as fleet growth is set to slow down to 5% in 2018 and 3% in 2019, respectively.

The LPG shipping trade will continue to grow at a healthy pace on the back of strong Asian demand, but fleet growth will outpace it, keeping rates under pressure in 2017, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. 2016 was a tough year for LPG shipping with rates coming under pressure across all size segments. 2017 is expected to be no different with the fleet set to grow by another 16%, on top of the 17% expansion seen last year. Asia-Pacific countries have been the major drivers of the LPG trade for several years, and imports to this region have grown at a robust rate of 12% annually over the last four years.

LPG shipping freight rates are forecast to deteriorate further through 2016 as a result of the fast rising fleet of Very Large Gas Carriers (VLGCs) which has already started to impact earnings of smaller vessel classes, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. VLGC freight rates have been in free-fall since August 2015 as fleet growth has continued to outpace demand. Over this period as many as 41 VLGCs have been delivered and as a result, spot rates for these vessels touched a six-year low of $25 per tonne in April on the benchmark AG-Japan route. In line with falling spot rates, time charter rates for VLGCs have also come under pressure, averaging $800,000 per month in April, 55% down on the same period last year.

Scorpio Tankers Inc. reported its results for the three and six months ended June 30, 2013. For the three months ended June 30, 2013, the company had an adjusted net income of $3.6 million, or $0.03 basic and diluted earnings per share, excluding a $0.3 million, or $0.00 per share of unrealized gain on derivative financial instruments. Including the unrealized gain on derivative financial instruments, the company had net income of $4 million, or $0.03 basic and diluted earnings per share. For the six months ended June 30, 2013, the company had an adjusted net income of $10.2 million, or $0.09 basic and diluted earnings per share, excluding a $0.4 million, or $0.00 per share unrealized gain on derivative financial instruments.

Drewry Shipping Consultants released its latest report, “Annual LPG Market Review and Forecast 2004/05”. Drewry’s main findings make extremely positive reading for ship owners as they are finally experiencing a period of stability and growth. Having experienced dramatic booms and busts since the turn of the century, Drewry’s report highlights how the various market segments are now performing. The new annual review and forecast specifically identifies that small LPG carriers have enjoyed a very good start to 2004 with spot rates for LPG cargoes in Europe rising to their highest level since 1995. Drewry’s report forecasts that prospects for this sector now look better than they have done for many years.

Eletson Officers for LPG Trade. The agreement involves a two-year Training Program run by EMS Ship Management and its affiliate EMS Crew Management onboard the LPG Carriers managed by them, to ensure that Senior seagoing Officers of Eletson Corporation are trained to operate/manage LPG Carriers. Both EMS Ship Management and Eletson Corporation are leading companies in their respective fields of ship management and ship owning. increasingly important role in the global gas and energy supply picture. new venture, the Company will apply the same values and commitment that have made Eletson a market leader in product tankers. Eletson owns and operates one of the world's largest fleets of medium and long range product tankers comprising 28 double hull tankers with a combined capacity of 1…

The world LPG carrier fleet is forecast to expand from 14.5 million cu. beginning of 2005 to 24.6 million cu. m. by 2015. World seaborne LPG trade (including ammonia and petchems) is forecast to increase from 73 mt to 132 mt over the same period. These are some of the findings in the new detailed report – entitled ‘LPG Carriers: Market Prospects to 2015’ – which analyses the current and historical developments within the LPG carrier sector and examines the prospects for trade and fleet development under alternative scenarios, presenting detailed forecasts for trade volumes, fleet requirements and freight rates through to 2015. • The world LPG fleet was estimated at 14.5m cu.