English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Gas capacity shortage looms says Drewry

PRESS RELEASE:

August 26, 2014: Continuing weak demand and excess tonnage are expected to depress LNG shipping earnings in the near term. But longer term the sector could face vessel shortages as ordering slows and liquefaction projects come on stream, according to the LNG Shipping Market Annual Review and Forecast report published by shipping consultancy Drewry.

Presently, the LNG shipping market faces tough times. The fleet continues to grow even though its trade has declined and LNG supply has stagnated. The global LNG trade fell for the second consecutive year in 2013 by 1%, as many liquefaction sites faced unplanned shutdowns, which resulted in tight supplies and higher prices.

Japanese imports rose just 1% in 2013 and are expected to stagnate as the country looks to restart its mothballed nuclear power plants, in the face of rising fossil fuel import costs and a depreciating currency. Imports to Europe declined 23% due to lower demand and increased reliance on piped gas. Likewise, imports by the US and Canada fell 45% and 42% respectively because of surplus natural gas production. Meanwhile, insignificant additions to global liquefaction capacity and unplanned shut- downs led to a tight LNG supply during the year.

Despite weak demand, LNG vessel capacity rose 5% in the 18 months to June 2014 to 56 million cubic metres. Drewry is forecasting that fleet growth will accelerate at an annual rate of 8% both this year and next to reach 66 million cubic metres by the end of 2015.

"A deadly combination of expanding vessel fleet, limited cargo availability and falling trade caused short-term freight rates for conventional LNG carriers to decline through 2013 and the first half of 2014," commented Drewry's lead gas shipping analyst Shantanu Bhushan. "Although there are plans to add 64 billion cubic metres per annum of liquefaction capacity during 2014-15, major concerns for shipowners are the timely completion of these projects, the possible restart of Japanese nuclear power plants and the fast rising vessel fleet. As a result, the outlook for unchartered vessels over the next 18 months is not favourable and we expect spot and short-term freight rates to remain under pressure."
However, demand is expected to recover strongly in the latter part of the decade as new production comes on stream, on completion of various projects under construction in Australia and North America.

Bhushan elaborated: "Drewry cautions shipowners that the anticipated rise in cargo traffic may take them by surprise. We expect that the LNG shipping industry will need many more vessels in the latter half of the decade than are currently on order."

 

More News

Written on 17/01/2018, 23:18
fedex-trade-networks-to-include-ecommerce-and-specialty-logisticsMEMPHIS, January 16, 2018. FedEx Corporation is combining its specialty logistics and e-commerce solutions in a new organization under its FedEx Trade...
Written on 17/01/2018, 22:25
singapore-and-kuehne-nagel-to-invest-in-advanced-logistics-technologySINGAPORE/SCHINDELLEGI, Switzerland: January 15, 2018. Singapore sovereign investor Temasek has signed an MoU with Kuehne + Nagel to invest in early stage...
Written on 16/01/2018, 22:59
freightweek-news-update-week-03-2018TROISDORF, Germany: January 16, 2018. Rail company TX Logistik has acquired a Swedish operating license as a precursor to launching services between...
Written on 13/01/2018, 15:10
freightweek-news-update-week-02-2018HOLZWICKEDE: Germany: January 12, 2018. The Rhenus Group has acquired Brazilian import broker Pirâmide SeaAir Comércio Exterior with offices in São...
Written on 10/01/2018, 23:01
fedex-opens-new-shanghai-hubHONG KONG, January 8, 2018. Federal Express has officially opened its 134,000 sq.mt. cargo hub at Shanghai Pudong International Airport to support 66...
Written on 10/01/2018, 22:55
dp-world-to-continue-us-1-billion-annual-investmentsDUBAI: January 08, 2018. DP World invested US$1 billion in global trade services, supply chain diversification and smart technology last year. The...
Written on 09/01/2018, 23:18
turkish-airlines-adds-to-b777-freighter-fleetSEATTLE: January 08, 2017. Turkish Airlines has ordered three more B777 freighters with a list price of approximately US$300 million each. The new order...
Written on 09/01/2018, 22:41
brussels-reports-best-traffic-in-a-decadeBRUSSELS: January 08, 2018. Brussels Airport finished 2017 with an 8.3 percent increase in air cargo traffic compared to 2016 with a total of 535,634 tons...
Written on 05/01/2018, 18:46
dunkerque-added-to-central-america-reefer-serviceCURACAO: January 04, 2018. Specialist reefer and bulk cargo carrier StreamLines has begun a new weekly service linking Central America, the Caribbean,...
Written on 04/01/2018, 22:29
swisslog-provides-automated-pharma-facility-for-kuehne-nagelBUCHS, Switzerland: January 03, 2018. Swisslog, a specialist in warehouse automation and robotics, is implementing a 'high-bay' warehouse at Möhlin in the...
Written on 03/01/2018, 23:56
block-train-helps-maersk-line-expand-in-nepalMUMBAI: January 03, 2018. Responding to a Nepalese import market that has doubled in the past five years, Maersk Line says it wants to increase its block...
Written on 02/01/2018, 18:27
freightweek-news-update-week-01-2018DOHA: January 07, 2018: Qatar Airways Cargo operated 14 B777 freighter flights to carry 1,400 tonnes of cherries from Santiago, Chile via Doha to Shanghai...
Written on 30/12/2017, 20:41
freightweek-news-update-week-52DUBAI: December 30, 2017. Emirates SkyCargo reports carrying 2.5 million tonnes of airfreight in 2017 and a 38 percent growth in pharmaceutical traffic...
Written on 18/12/2017, 17:30
freightweek-news-update-week-51AMSTERDAM: December 22, 2017. Hutchison Ports has acquired a 50 percent stake in TMA Logistics, with three locations in Amsterdam and one in Antwerp as...
Written on 15/12/2017, 22:46
tx-logistik-buys-40-bombardier-locomotivesTROISDORF, Germany: December 14, 2017. Italian rail company TX Logistik has signed a purchase and maintenance contract with Bombardier Transportation for...
Written on 15/12/2017, 21:57
turkish-airlines-signs-airport-transfer-dealISTANBUL: December 14, 2017. Turkish Airlines has signed a consulting contract with Munich Airport International (MIA) to help facilitate the transfer of...
Written on 15/12/2017, 19:59
xeneta-to-add-air-to-ocean-rate-platform-in-2018OSLO: December 14, 2017. Ocean rate platform Xeneta is adding air cargo rates to a product suite that it says will "bring fresh levels of transparency to...
Written on 15/12/2017, 17:34
cargolux-gets-the-measure-of-wind-farmsLUXEMBOURG: December 15, 2017. Cargolux and Globaltrans Internationale Logistik have delivered two wind measuring buoys for two 2.8GW capacity wind...
Written on 15/12/2017, 15:44
brussels-bounces-backBRUSSELS: December 15, 2017. Brussels Airport is finalizing plans for a new cargo warehouse and additional apron space in anticipation of new services by...
Written on 14/12/2017, 21:15
dhl-tests-abc-pharma-service-to-nicaraguaMOSCOW: December 13, 2017. DHL Global Forwarding (DGF) has tested the reliability of using the AirBridge Cargo Airlines (ABC) pharma logistics service...

- powered by Quickchilli.com -