×
×
Project Insights

Higher charter rates for LNG shipping here to stay

LNG shipping prices are likely to remain high as new export capacity comes online, with orders for new vessels putting pressure on shipyards LNG shipping prices are likely to remain high as new export capacity comes online, with orders for new vessels putting pressure on shipyards.
By Andrew Walker 7 November 2018 World / LNG 0 33200
An LNG carrier approaching Italy’s Panigaglia terminal. (Interfax)

The LNG industry faces a prolonged period of higher ship charter rates as new export capacity in the United States and growing demand in Asia will result in longer journeys and greater demand for vessels over the coming years.

The availability of ships for spot charters has dropped as arbitrage opportunities between Europe and Asia have increased. This has seen more vessels making the journey to Asia than anticipated, particularly from the two export projects now online on the US Gulf Coast.

Buyers of US LNG had...