LPG Vessels on Order: More & Larger in Size

Drewry Maritime Research
Friday, March 08, 2013
LPG Carrier: Photo credit Hoegh

Rising demand from emerging country economies has prompted owners to order more and larger LPG vessels, according to Drewry.

The increased demand has been further improved by a growing consumption base in emerging economies, with supply bolstered by an expected emergence of new export sources, notably the US and the Russia.

LPG demand in the so-called saturated markets, such as Japan and South Korea, is also expected to remain robust on the back of government support and increasing consumption in sectors other than the residential sector.

China has also been investing in PDH units, which could help imports to recover in the medium and long term. These developments, or expected developments, from both the supply as well as the demand side, have led owners to believe that tonne-mile demand could rise in the medium and long term. In response, newbuilding activity has gained momentum.

Only five VLGCs were ordered during 2010 and four in 2011, but there were 11 orders for VLGCs aggregating more than 0.9 million cbm during 2012. The average size has grown too, rising from 15,179 cbm in 2010 to 32,125 cbm last year, on the back of the 11 VLGC orders.

The increased demand has been further improved by a growing consumption base in emerging economies, with supply bolstered by an expected emergence of new export sources, notably the US and the Russia.

LPG demand in the so-called saturated markets, such as Japan and South Korea, is also expected to remain robust on the back of government support and increasing consumption in sectors other than the residential sector.

China has also been investing in PDH units, which could help imports to recover in the medium and long term. These developments, or expected developments, from both the supply as well as the demand side, have led owners to believe that tonne-mile demand could rise in the medium and long term. In response, newbuilding activity has gained momentum.

Only five VLGCs were ordered during 2010 and four in 2011, but there were 11 orders for VLGCs aggregating more than 0.9 million cbm during 2012. The average size has grown too, rising from 15,179 cbm in 2010 to 32,125 cbm last year, on the back of the 11 VLGC orders.

Source: Drewry Maritime Research

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

COSCO Delivers Bulker

The Board of Directors of COSCO Corporation (Singapore) Limited announced that COSCO (Dalian) Shipyard Co., Ltd a subsidiary of the Company's 51% owned COSCO Shipyard Group Co.

Navy to Commission Submarine North Dakota

The Navy will commission its newest attack submarine North Dakota, during a ceremony Saturday, Oct. 25, 2014, at Submarine Base New London in Groton, Connecticut.

Tanker Trends

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0947 sec (11 req/sec)