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 percent in 2015 and 2016, and is expected to grow by 9 percent in 2017. However, shipowners can now breathe a sigh of relief as fleet growth is set to slow down to 5 percent in 2018 and 3 percent in 2019, respectively.
As growth rates vary among size segments, Drewry has looked into the freight rate prospects of different size category of vessels and believes that Handysize ships (12,000-25,000 cbm) will be the worst performers in 2018, while small LPG vessels (1,000-5,000 cbm) will be the best. Fleet growth will be the main catalyst for their freight rate outlook.
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