3 per tonne on the benchmark Baltic route. Houston to Japan route is holding near one-month highs of around $107/mt or more. Net, the effect is 2% reduced VLGC demand in 2019/'20. 8% in 2019 to 5,130 million metric tons (MMmt), according to data in the U. It may be increased by careful management, clever chartering and flexible ship design to minimize time ballast and ensure that the vessel is earning revenue for a high proportion of its time at sea. VLGC Spot Freight Rates. Analysts predict long tonnage list in June will see earnings drop to opex levels. 775 / Moulded depth: 20. BIMCO Standard Gas Voyage Charter Party For the LPG, Ammonia and Liquefied Petrochemical Gas Trades Code Name: GASVOY 2005 PART I Printed and sold by Fr. Auto Refresh Is. 9, according to Fearnleys in London. SAP HANA projects or applications may be divided broadly in 4 categories - 1. According to Clarksons Platou Securities, VLGC spot rates between the Middle East and Japan reached $51,300 per day as of June 4, up 12 percent week-on-week and up 21 percent month-on-month. The strengthening of the market in 2002 through 2004 leading to the 2004 boom can be ex-plained simply by ton-mile demand. West-of-Suez diversion may boost VLGC rates through Aug If current bunker rates in Fujairah are sustained and VLGC spot rates remain unchanged August will be a bumper month for shipowners. All other readers will be directed to the abstract and would need to subscribe. Owing to these restrictions a new design of VLCC was made by Stena which is a wide body VLCC with a suezmax depth. Fleet utilisation (%) versus VLGC spot rate (USD/day) LPG shipping sector report 86% 77% 77% 80% 81% 85% 93% 100% 89% 85% 85% 91% 93% 94% 35,000 44,000 47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 70% 75% 80% 85% 90% 95% 100% 105% YOY (%) USD/day Fleet utilisation (%) VLGC spot rate (USD/day) 17% 18% 9% 2% 4%. We expect the shipping market to remain relatively strong in 2020, with rates to remain in the mid- to high-$50/ton levels, well above the often-regarded breakeven levels of $30-40/ton. • The current fleet of VLGCs is about 221 vessels with 53 ships on order. Today, rates of VLCCs are anywhere between $200,000-300,000 a day, according to analyst Poten & Partners. " The Greek LPG shipowner and trader Naftomar has placed an order for one plus one 84,000. VLCC rates have arguably been hit the hardest from peak to trough, although that provides little to no consolation to other vessel classes. VLGC Oversupply to Put More Pressure on Freight Rates High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to shipping consultancy Drewry. 843 pmt, which is the second highest average value since the all-time high of USD 92. Average rates YOY increase around 30% for 3,500cbm, 24% for 5,000cbm, and flat for the 7,500cbm and 11,000cbm vessels. Beginning each Monday by 11AM Tickets will become available for purchase through the following two weekends. Houston-Japan VLGC rates had averaged $118. Elengy - LNG Cargo Transfer - Calculation methods and rounding-offs 3/14 Version of April 2015 These energies are evaluated by determining the transferred volumes and/or masses, the LNG density, and the mean gross heating value on a volumetric and/or mass basis for the duration of the cargo transfer:. All quarterly report updates are accompanied by tables and charts in MS Excel format. -Asia propane spot arbitrage, which averaged over $70 per metric ton during the quarter ended December 31, 2019 compared to. Quarterly VLGC Eight Year Old Prices (US$ m) Source: Steam 1960. Printer version. 8 per ton or US$15,000 per day in Q1 2019. Natural Gas Intelligence (NGI), is a leading provider of natural gas, shale news and market information for the deregulated North American natural gas industry. VLGC rates on the Persian Gulf to Japan route have slid to near four and half-month lows of around $52/mt. 8 per ton on the benchmark Baltic route, nearly halving to USD 21 per ton after starting the quarter at USD 36 per ton. VLCC Spot Rates: A Rare Bright Spot Dirty tanker rates are in a well-documented and, for owners, tiring slump that leaves earnings levels well below their peaks seen almost five years ago now. Last year the industry was preparing for a $4 billion jump in annual bunker costs. Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. VLGC newbuilding flood starts 06 Jan 2017. Ship owners like Dorian LPG are reaping the benefits of very strong VLGC spot rates. BIMCO Standard Gas Voyage Charter Party For the LPG, Ammonia and Liquefied Petrochemical Gas Trades Code Name: GASVOY 2005 PART I Printed and sold by Fr. Revenues of $32. This equates to average VLGC spot rates of USD 13k/d in 2017E, USD 18k/d in '18E and USD 25k/d in '19E. The VLGC West market is also strong with limited number of vessels being available ex US Gulf for July. The market for chemical tankers also remained fi rm. 8 per ton or US$15,000 per day in Q1 2019. American Journal of Transportation 116 Court Street, Suite 5 Plymouth, MA 02360 (508) 927-4188. This Forecaster annual subscription package now includes FREE Monthly. West-of-Suez diversion may boost VLGC rates through Aug If current bunker rates in Fujairah are sustained and VLGC spot rates remain unchanged August will be a bumper month for shipowners. Auto Refresh Is. The above graph shows the quoted freight rates in the two main VLGC trade routes; the Arabian Gulf-Japan route (the. Amid this upswing in the external environment, we are still aggres-. Strong Arabian Gulf-Japan LPG rates support VLGC sector despite vessel supply glut - Transport, Maritime, Freight, Freight Rates, Gas, Middle East, VLGC, NEWS. The freight rates for an Arabian Gulf to India run for a modern Suezmaz tanker or a very large gas carrier (VLGC) have gone up by $150,000 to $300,000 per day on account of the additional war risk. Activity became quieter at the end of the month. , including the 13 that it acquired from Scorpio Tankers. Located in the South Texas Gulf Coast, Corpus Christi offers popular tourist attractions, a variety of hotels, cultural venues, shopping and dining options and best. Our quarterly LPG market forecaster provides a robust evaluation and outlook for the market from a shipping perspective. Rates for both spot cargoes and term business dropped continuously over the year, mostly due to the almost complete lack of spot cargoes and the transatlantic arbitrage being shut for most of the year. US exports of liquefied petroleum gas, coupled with. Freight Payable to: H. Freight rates of VLGC's are expected to increase at a rapid rate owing to the opening of the enlarged Panama Canal. • VLGC capacity was not enough to facilitate increased flows from the US to Asia, leading to high freight rates. Operating in a rapidly evolving and complex market, our customers rely on our industry-leading LPG and Ammonia team to provide the full range of gas-related services including ship, commodity, derivative and asset broking. 19 Jan 2017; Japanese land first VLGC time charter of 2017 12 Jan 2017. The Vale of Llangollen is regarded as one of the top golf courses in Wales and it has become a highly favoured venue for many County, National and Professional events. Vessel defined by Clarksons as more than 60,000 cbm. • 2016: Spot freight rates capped by price differentials in the international LPG market, traders netbacks only positive at low freight rates • 2016: Over 20 large US cargoes cancelled in Q3 A globalized LPG market has evolved VLGC spot rates determined by US-Asia LPG price differentials > high fleet utilization due to low spot rates 0 10. Company specifics: Market fundamentals:. Declining VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East to pick up growing volumes of LPG tonnes from the US Gulf to global markets, trade and shipping sources said this week. Very Large Gas Carrier rates on the key Middle East-Japan route have touched near four-month highs around $79/mt this week and looked poised to surpass $80/mt for the first time since October 2015 as more ships head to North America and Northeast Europe to lift LPG amid Saudi supply concerns and growing demand in. On 21 July, rates averaged USD129. 2 million on 19 operating days. Shipowners are hoping for a better future as annual fleet growth is set to slow down from 16% in 2016-17 to a more manageable 5% over 2018-19. The Avance Gas index can be interpreted as a quote for average VLGC spot rates. 86 million TCE) at the last day of the year. Freight rates per teu on the major Asia-Europe container trades have seen an unprecedented 30% tumble this week. All other readers will be directed to the abstract and would need to subscribe. According to the company's financial results, in 2017 its VLGC fleet achieved an average earning per VLGC of US$18,600/day (versus a Baltic Exchange-reported spot rate of US$13,500/day). What I would like to do is convert the Euro futures price to the spot price, or convert Euro forward rates (i. China set on building own VLGC fleet to secure LPG supplies. As a result of the large number of newbuilding deliveries in 2016, VLGC freight rates in the first quarter of 2017 had fallen to around USD 450,000/month, or approximately 60% below those pertaining in the same quarter last year. The Indonesian Rupiah is the currency of Indonesia. Oil Snaps Five-Day Rally. With at least half of the VLCC market participants meeting in Dubai this week, fixture activity has. The VLGC fleet has expanded at the rate of 7% quarter-on-quarter over the last four quarters, fast outpacing cargo demand growth. We expect BW LPG to achieve average sailed-in spot rates of USD19k/day for 2017, USD29k/day for. TEU Twenty foot Equivalent Units. Owners of very large gas carriers (VLGCs) are upbeat about 2020, with the market in a recovery period. For the last 6 years I have worked in physical and derivative trading within the LPG market. Freight Route Liquid Petroleum Gas (Baltic) Future Quotes Globex. Spot vessel rates for Algeria, West Africa, and Houston to Japan were approximated at about USD210/tonne, USD215/tonne and USD310/tonne respectively. The latter is a calculated freight figure and. Rising public and government concern drove changes in Northeast Asia winter coal policy. Live Spot Prices for Gold, Silver, Platinum, Palladium and Rhodium in ounces, grams, kilos and tolas in all major currencies. 7% lower in both 2019 and 2020, with spot rates down $5k/d and asset prices 4-5% lower vs our base case. On quite a few occasions, the freight economics made more sense on a VLGC for these typical MGC cargoes,. Freight rates of VLGC's are expected to increase at a rapid rate owing to the opening of the enlarged Panama Canal. Demand is projected to be slightly lower than fleet growth on a volume basis, but a massive expansion of US LPG. The current record was set in March, when spot rates for dry van deliveries spiked to $2. 7 million on 53 operating days for the three months ended December 31, 2015 from $0. According to Clarksons, VLGC rates from the Middle East to Asia between January and early December 2017 averaged USD15,000/day, down 32% from the same period the year before. Holyhead Road, Llangollen. Fleet utilisation rose from 84% in the first quarter to 89% in the second, largely as a result of higher COA volumes. VLCC rates will approach USD 41,000 a day, which puts them 140 percent higher than last month's rate level, says Platou. The consultancy reports that VLGC freight rates were at their highest in late January. Spot rates have rebounded and are approaching the approximate industry average breakeven rate of $21,000. m, 1989 build, was $40,000 lower at $920,000 pcm and a 24,000 cu. despite VLGC spot rates below USD8k/day as the LPG market still suffers from closed US-Asia propane arbitrage. In the Baltic Exchange explained, I will now focus on what the Baltic aims. News about ITF hyperlink. This recovery in Asian LPG prices was led by winter heating season, as well as rising. Kim Ullman calls for moderation in tanker upturn. According to Clarksons Platou Securities, VLGC spot rates between the Middle East and Japan reached $51,300 per day as of June 4, up 12 percent week-on-week and up 21 percent month-on-month. "Last week, we were referencing the winter of 2015 as that was the last time VLCC rates. 7 million per month by July last year. Freight Route Liquid Petroleum Gas (Baltic) Future Quotes Globex. This equates to a fleet utilization 1. While MEG-West routes stayed flat at WS 35, several MEG-East voyages have been fixed this week at WS 55, brokers tell Tankerworld, up from around WS 50 last week. 81 the first year and by $3. VLGC rates dive as traders relet ships After reaching a 2015 high of USD137. "We believe the impact of the attack will be a firming freight environment," said Avance Gas chief executive Ulrik Andersen, whose company owns 14 VLGCs. Jun 07, 2015. Read More. Suezmax A tanker size range defined by Natural Mining as 120,000-200,000 dwt. The Pressurized vessel segment has solidified its recovery throughout. VLGC Freight Persian Gulf-Japan • VLGC capacity was not enough to facilitate. VLGC Freight Houston-Japan. Freight Payable to: H. BW LPG generated VLGC daily TCE of US$15,100 per day based on calendar days. prices soared, which was one factor in the strengthening of western rates. The arbitrage movement on propane has been affecting VLGC spot rates, which reached a high of $55,000/day in the third quarter. By: ASC Staff. The strengthening of the market in 2002 through 2004 leading to the 2004 boom can be ex-plained simply by ton-mile demand. 5% and the BHSI by -5. The rate hike would raise the bill of a household using 1,000 kilo-watts per month by $3. Spot Rates ($ per day) Quarterly VLGC 8yr Old Prices ($ MM) VLGC rates have fallen by 75% YOY in 2016 leading to a 23% reduction in secondhand prices $10,000. News about ITF hyperlink. Net, the effect is 2% reduced VLGC demand in 2019/'20. Bill of Lading A document that establishes the terms of a contract between a shipper and a transportation company. Shipowners are hoping for a better future as annual fleet growth is set to slow down from 16% in 2016-17 to a more manageable 5% over 2018-19. 23 / MT LS FREIGHT $ 3. AVANCE-NO: Initiation (BUY, TP 28) Avance Gas has a fleet of 14 Very Large Gas Carriers (VLGC) mainly constructed in China and South Korea. The arbitrage movement on propane has been affecting VLGC spot rates, which reached a high of $55,000/day in the third quarter. The VLGC fleet has expanded at the rate of 7%, quarter-on-quarter over the last four quarters, fast outpacing cargo demand growth. Tanker equity prices dropped 15-20% this week led by Nordic American Tankers (NAT) falling about 25% since Monday. The spot chartering rates for Houston to Chiba route has gained by $21/mt since its a year-low of $75/mt in end-March, based on OPIS record. EBITDA for the second quarter amounted to USD 39. Knudtzons Bogtrykkeri A/S, Vallensbaekvej 61, DK-2625 Vallensbaek. 5% decrease from the $24,695 TCE rate from the same period in the prior year, primarily driven by relatively flat spot market rates coupled with increased bunker prices. “Considering our weak freight outlook for the next twelve months, we expect there is more downside risk to second-hand values of VLGCs. VLCC Spot Rates: A Rare Bright Spot Dirty tanker rates are in a well-documented and, for owners, tiring slump that leaves earnings levels well below their peaks seen almost five years ago now. 1 year TC (US 1,000 pcm) Baltic LPG (lhs) Spot TCE (USD 1,000 pcm) BALTIC RATE (AG-FE, USD/ML) AND VLGC EARNINGS term and one-year contracts being concluded at half the monthly rates experienced two years ago, i. Avance Gas transports LPG from either Middle East Gulf or US Gulf to destinations in Europe, South America, India and Asia. Meanwhile, the price differential between LPG in the US and Asia has averaged a mere $60 per tonne in the third quarter of 2016, down from $208 per tonne over the same period last year. The upshot is that dry rates, which were poor anyway, are back under pressure with all but the Capes losing ground last week; the BPI by -9. Avance Gas chartering strategy is to offer our customers a combination of spot voyages and Contract of Affreightments. VLGC rates drop 10% with further downward pressure coming. We forecast net supply growth of 12% in 2017E, 3% in 2018E and 1% in 2019E. 4 million from US$406. Asphalt: East Coast retail asphalt and flux prices mostly steady in the. Hire costs for very large crude. 7 million from the same quarter last year mainly due to a decline in LPG spot rates. VLGC spot rates firming on Harvey outage By Michael Angell on 09/01/2017 Major US Gulf Coast LPG terminals still inaccessible, but some movement hoped for over weekend. 9 million due to a decrease in VLGC rates for vessels that were in our fleet during both three month periods. North Sea offshore slump 'worse than 2014' as OSV spot rates plunge 77% TradeWinds 10:47 Petronas cheers Indonesia oil and gas flows Upstream 10:39 Teekay Tankers secures $32. OPIS 44,000mt VLGC Freight Rates ($/mt) Route Rate Change NWE C3 Netback NWE C4 Netback AG - Japan 65. Shipowners are hoping for a better future as annual fleet growth is set to slow down from 16% in 2016-17 to a more manageable 5% over 2018-19. As Table 1 sets out, the time series consists of 4536 observations, a large enough set to engage in multifractal analysis. VLGC Freight Rates Recover Pic: BW LPG The Very Large Gas Carrier (VLGC) freight rates started to recover towards the end of the first quarter as U. Based on the review, major literature gaps are identified, namely the lack of coverage for LPG and product tanker shipping market, the inadequacy of current. VLGC spot rates fell another 10% last week, compared. ECO VLGC CORVETTE1 84,000 2015 Hyundai HI Scrubber 19 vessels operate under spot, COA or Time ECO VLGC CORSAIR 1 84,000 2014 Hyundai HI SR Charter contracts of less than 24 months ECO VLGC COMET 84,000 2014 Hyundai HI SR in the Helios Pool, remaining 3 on TC. The half-on-half translation impact of the dollar was not significant and the Group holds forward contracts for $12 million at an average rate $1. Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. A globalized LPG market has evolved. Middle East tanker charter rates, up more than 90 percent since the start of the year, appear to have reached a plateau, shippers said. Owners of very large gas carriers (VLGCs) are upbeat about 2020, with the market in a recovery period. Freight rates for VLGC vessels surged to historical highs in April, thanks to rising LPG supply from the US and increasing US-Asia trade. However, US exports would flow to other importers and China would source LPG from other exporters. Pay after April 12 and the entry fee is $75 Weekly Play • Modified Stableford scoring system—stroke play. All quarterly report updates are accompanied by tables and charts in MS Excel format. VLCC spot rates jumped 100 percent in the Middle East region and 26 percent overall last week, said Mehrotra. Fearnleys Weekly Report Week 18 - April 27, 2020. 23 / MT LS FREIGHT $ 3. 5% decrease from the $24,695 TCE rate from the same period in the prior year, primarily driven by relatively flat spot market rates coupled with increased bunker prices. exports of LPG, a by-product of shale gas, increased throughout the year. On the other, a flurry of fixtures has left vessel availability looking much shorter in the West. 50 -- -- -- --Route Rate Change NWE C3 Netback NWE C4 Netback USGC - NWE 65. Based on the current Brent crude oil futures curve, and assuming unchanged US LPG prices, we estimate VLGC rates below USD 10k/d until 2020E. VLGC rates on the Persian Gulf to Japan route have slid to near four and half-month lows of around $52/mt. separate one-time rate increase to recover $252 mil-lion in damages caused by tropical storms last year. The strengthening of the market in 2002 through 2004 leading to the 2004 boom can be ex-plained simply by ton-mile demand. BW LPG Limited Condensed Consolidated Interim Financial Information Q1 2019 3 MARKET Freight Rates & Global LPG Demand The average benchmark Baltic route for VLGCs averaged US$29. LPG prices down, widening the geographical LPG price arbitrage between the U. 2017 looks like a transition year, and we do not see a recovery in the shipping market balance before 2018, with demand growth set to outpace supply growth by 2. Rates to Japan have fallen $14 from the June high of $57 a tonne, while the route to Europe has lost $7. In the Baltic Exchange explained, I will now focus on what the Baltic aims. VLGC newbuilding flood starts 06 Jan 2017. as Anglo-Eastern Management Services, then as Anglo-Eastern Ship Management. Vessel defined by Clarksons as more than 60,000 cbm. Dorian LPG is incorporated in the Republic of The Marshall Islands. really tough year in 2017. VLGC earnings in the spot market (on the benchmark AG-Japan route) averaged $12,500pd; way below the break-even rate of $21,000pd. ("Hyundai"), on September 26, 2014 - which is trading in the spot market. BDI The Baltic Dry Index is an index covering dry bulk shipping rates and managed by the Baltic Exchange in London. Over the year, the majority was trading LPG. As Table 1 sets out, the time series consists of 4536 observations, a large enough set to engage in multifractal analysis. • 2016: Spot freight rates capped by price differentials in the international LPG market, traders netbacks only positive at low freight rates • 2016: Over 20 large US cargoes cancelled in Q3 A globalized LPG market has evolved VLGC spot rates determined by US-Asia LPG price differentials > high fleet utilization due to low spot rates 0 10. Waterborne LPG Live offers continuously-updated data and insights driven by vessel-level information, to help you identify trends, track market fundamentals and more. GE owns 6 Gas carriers now of which 3 added in the current FY from just one Very Large Gas Carrier (VLGC) as on March'16. Another major distinction is that we use the spot rates as such, while in Adland et al. 5 million from the same quarter last year mainly due to the decline in LPG spot earnings and a smaller fleet size. Also, cargo availability increased in […]. Our dry cargo desks are strategically located in the Fearnleys offices in Oslo, Shanghai, Hong Kong, Singapore, Mumbai and London. 86 million TCE) at the last day of the year. VLGC freight rates climbed to record levels in the quarter, with the Avance Gas Spot VLGC Index averaging USD 99,836/day in 3Q2015, up from USD 79,757/day in 2Q2015. The strong demand from customers in Asia has contributed to high VLGC fleet utilization and spot market rates. Since 1992, spot rates have averaged 10-20% below the yearly average in February to April, and 0-15% above. Shipowners are hoping for a better future as annual fleet growth is set to slow down from 16% in 2016-17 to a more manageable 5% over 2018-19. One distinguishing feature of the LPG shipping market is that there are often energy substitutes for LPG products, such as naphtha ( Engelen and Dullaert, 2012 ). VLGC BW Aries, and in February 2015 held the ship naming ceremonies for BW Carina, BW Gemini, and BW Leo. SAP HANA projects or applications may be divided broadly in 4 categories - 1. 9, according to Fearnleys in London. VLGC Shortage / (Surplus) vs. Suezmax A tanker size range defined by Natural Mining as 120,000-200,000 dwt. 6 million, down by USD 12. VLGC is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms. This paper contributes to a better understanding of the VLGC market, which is growing rapidly but still remains under-researched. All quarterly report updates are accompanied by tables and charts in MS Excel format. VLGC slide pack Company specifics: Market fundamentals: Disclaimer: The publisher currently has no investments in the company. VLCC rates will approach USD 41,000 a day, which puts them 140 percent higher than last month's rate level, says Platou. Negotiating freight and charter party terms and conditions with chemical vessel owners to secure the best freight rates for spot and COA fixtures Engaging and networking with Chinese, Japanese, Korean and South East Asia chemical vessel owners and shipping brokers for potential business projects. Container shipping rates remained steady over the past week, as trade tensions between the U. VLGC Spot Freight Rates. In respect of final settlement, the Floating Price will be a price in USD and cents per metric tonne based on the average of the assessments as made public by the Baltic Exchange for the relevant route for each business day (as specified below) in the determination period. However, shipowners and traders with their own vessels were cautious. 15 November 2019. It may be increased by careful management, clever chartering and flexible ship design to minimize time ballast and ensure that the vessel is earning revenue for a high proportion of its time at sea. For the last 6 years I have worked in physical and derivative trading within the LPG market. number of vessels for a further 12 months at rates below those they agreed last year. VLGC freight rates climbed to record levels in the quarter, with the Avance Gas Spot VLGC Index averaging USD 99,836/day in 3Q2015, up from USD 79,757/day in 2Q2015. The lower commodity prices, however, helped spot tanker rates hit 7-year highs of $64,000/day in May 2015. I also note that Saudi Aramco’s biggest competitor in the LPG market is freight, with Baltic VLGC spot rate assessed at $128/mt while Japan/Gulf LP spread is below $122/mt… The weakness in the spreads isn’t priced in the Baltic panel freight assessments. VLGC earnings in the spot market (on the benchmark Arabian Gulf-Japan route) averaged $12,500pd; way below the break-even rate of $21,000pd. Tanker rates: one spot voyage makes the whole year in red hot market Published 30 April 2020 17:33 GMT Tankers Occidental Petroleum fixes one-year VLCC charters at firm rates Published. If current bunker rates in Fujairah are sustained and VLGC spot rates remain unchanged August will be a bumper month for shipowners. For the last 6 years I have worked in physical and derivative trading within the LPG market. VLGC Oversupply to Put More Pressure on Freight Rates High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to shipping consultancy Drewry. According to Drewry’s report, “ample vessel supply squeezed the freight market”, resulting in VLGC earnings in the spot market on the benchmark AG-Japan route averaging US$ 12,500 per day. Houston to Japan route is holding near one-month highs of around $107/mt or more. Public companies with spot VLGC exposure: Dorian LPG (NYSE: LPG), BW Gas (Oslo: GAS) Containers hang in the balance. VLGC spot rates fell another 10% last week, compared. VLGC Freight Rates Recover Pic: BW LPG The Very Large Gas Carrier (VLGC) freight rates started to recover towards the end of the first quarter as U. Filed Under: Tanker Report. Overall, spot rate has increased YoY but is still below break-even levels. Today, rates of VLCCs are anywhere between $200,000-300,000 a day, according to analyst Poten & Partners. VLGC freight rates climbed to record levels in the quarter, with the Avance Gas Spot VLGC Index averaging USD 99,836/day in 3Q2015, up from USD 79,757/day in 2Q2015. For the reminder of the year, freight rates were on a downward slope, with the BLPG being assessed at USD 63 pmt (USD 1. SIMON SAYS: Europe – From Russia with Love Submitted by Simon Hill on Mon, 07/01/2019 - 16:10 The North West European market used to be really exciting, it was the happening place, new production in both UK and Norwegian sectors, lots of load ports such as Sullom Voe, Braefoot Bay, Grangemouth, Flotta, Tees and Karstoe. "We believe the impact of the attack will be a firming freight environment," said Avance Gas chief executive Ulrik Andersen, whose company owns 14 VLGCs. Settlement prices on instruments without open interest or volume are provided for web. VLGC spot rates fell another 10% last week, compared. This week, S&P Global Platts assessed Pacific and Atlantic day rates for LNG vessels at $140,000/day and $130,000/day,. And with China’s well-known ‘blue-sky’ policy success further encouraged by continued low spot prices, LNG is being touted as a possible solution for other Asian markets. 2 million metric tons (2019) 32. 0 per ton on the benchmark Baltic route in April before recovering slightly to US$27. Timing of carriers purchase and sell track record remains. I have heard this question many a times from a lot of functional consultants. However, shipowners and traders with their own vessels were cautious. Fleet utilisation (%) versus VLGC spot rate (USD/day) LPG shipping sector report 86% 77% 77% 80% 81% 85% 93% 100% 89% 85% 85% 91% 93% 94% 35,000 44,000 47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 70% 75% 80% 85% 90% 95% 100% 105% YOY (%) USD/day Fleet utilisation (%) VLGC spot rate (USD/day) 17% 18% 9% 2% 4%. prices soared, which was one factor in the strengthening of western rates. 80 CRORES 12 Tanker. The Avance Gas index can be interpreted as a quote for average VLGC spot rates. Spark Commodities Pte Ltd. Today, rates of VLCCs are anywhere between $200,000-300,000 a day, according to analyst Poten & Partners. Mon, 04 May 2020 17:28. 2017 was very challenging for VLGC shipping, because the large vessel supply pressured freight market. 6 million, down by USD 12. Our dry cargo desks are strategically located in the Fearnleys offices in Oslo, Shanghai, Hong Kong, Singapore, Mumbai and London. That fleet is on the verge of doubling. A shortage of vessels due to Indian congestion and US exports had sent the Baltic index to a record of US $143/mt in July 2014, while rates in the first four months of this year have averaged US $88/mt, versus US $73/mt in the same period last year. 938 per tonne on 15 July, rates to ship LPG on very large gas carriers (VLGCs) have since been falling. VLGC earnings in the spot market (on the benchmark AG-Japan route) averaged $12,500pd; way below the break-even rate of $21,000pd. Declining VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East to pick up growing volumes of LPG tonnes from the US Gulf to global markets, trade and shipping sources said this week. - Equasis provides safety related information on ships and companies. Keep informed on Dollar Index Spot updates. “VLGC rates continued the march higher, breaking $60,000 perday, a new cycle. After the $5 billion-plus expansion of the Panama Canal is dedicated this Sunday, June 26, the first “New Panamax” vessel scheduled to pass through the canal’s new, longer, wider locks will be the Lycaste Peace, a Very Large Gas Carrier (VLGC) that is transporting propane from Enterprise Products Partners’ Houston Ship Channel export terminal to Tokyo Bay in Japan. In the LPG tanker market as well, favorable market conditions persisted as U. 5%, the BSI by -13. The Impact of Bunker Price on VLCC Spot Rates Jack Devanney Martingale Inc, USA, [email protected] Charterers are currently paying $3. VLGC freight rates have been in free-fall since August 2015 as fleet growth has continued to outpace demand. The US accused Iran of being behind attacks in the Persian Gulf on Thursday and said it would raise the issue at the United Nations after two oil tankers were seriously damaged in an attack. Spot rates for liquefied natural gas (LNG) carriers are now higher - much higher - than for crude tankers. Activity became quieter at the end of the month. 95 MILLION RS. BW LPG maintained its focus on the spot market, improved utilisation in a rising market, and deployed the fleet to markets generating premium earnings. All quarterly report updates are accompanied by tables and charts in MS Excel format. Japanese land first VLGC time charter of 2017 12 Jan 2017. Activity became quieter at the end of the month. Working through supply driven weakness for small-ship LPG No long term correlation to VLGC & midsize earnings Daily Earnings (12M TC) -Handy size. The rate of translation as at 31 August 2010 was $1. VLGC rates on the Persian Gulf to Japan route have slid to near four and half-month lows of around $52/mt. The Forum was held in partnership with Fearnley Securities and in. STAMFORD, Conn. 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150. Auto Refresh Is. These factors resulted in a decrease in TCE income of US$47. Market Feature — VLGC Developments "More VLGC orders against a backdrop of weakening spot VLGC rates. Pay after April 12 and the entry fee is $75 Weekly Play • Modified Stableford scoring system—stroke play. Nov 2016 Presentation - Dorian LPG. But, new International Maritime Organisation (IMO) regulations on bunker fuels may restrain freight rates and profits. The Baltic Exchange puts the benchmark Gulf-Far East rate at USD135. The strong demand from customers in Asia has contributed to high VLGC fleet utilization and spot market rates. Activity became quieter at the end of the month. Spot market Short term contracts for voyage, trip or short term time charters, normally no longer than three months in duration. LAST POSTED SPOT RATE ($/mt) SPOT TCE RATE ($/day) VLGC, 44 (AG-Japan) there has been some fresh spot requirement. These developments have led to a rise in tonne-mile demand, resulting in tight tonnage availability and record high spot freight rates, according to Drewry. VLGC Oversupply to Put More Pressure on Freight Rates High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to shipping consultancy Drewry. Tanker report - Week 46. VLGC spot rates firming on Harvey outage By Michael Angell on 09/01/2017 Major US Gulf Coast LPG terminals still inaccessible, but some movement hoped for over weekend. The four cargo tender ex Idku has since closed and could potentially generate further Chartering interest in the region. PRESSURIZED The firm upward trend in rates in the Pressurized vessel segment has stabilized over the past six months. Activity became quieter at the end of the month. Print Email 20 th April 2020. This shows how sensitive spot rates are to global energy prices. 61 per barrel (WS240) for an intra- Med cargo, versus $0. TEU Twenty foot Equivalent Units. Avance Gas' fleet continued trading spot and on spot-indexed time-charter contracts in the quarter ended September 30. 8 million on June 30, 2016, based on $42. What it got was a 2020 with marine fuel prices at their lowest for several years. Nov 2016 Presentation - Dorian LPG Baltic Exchange Baltic VLGC Daily Spot TCE Rates (M USD) Global VLGC Fleet Utilization 96% 88% 2015 2016 Oct YTD 0 20 40 60 80 100 120 140 Daily VLGC Rate 4 Week Trailing Average 1 Year Trailing Average. With new routes developed for long voyages from the US to India and Indonesia, the annual average spot freight rates for 2019 assessed by Rim was $57. Most of the vessels were employed in the time charter market, only 2 vessels were reported in the spot market at the end of the year. There have now been over 750 VLCC's fixed in 2020 (almost 250 of those were MEG to China) and this week VLCC voyage rates continued the decline that started last Thursday/Friday as spot rates dropped well below $100,000/day levels. 775 / Moulded depth: 20. The Pressurized vessel segment has solidified its recovery throughout. EBITDA for the second quarter amounted to USD 39. -Asia propane spot arbitrage, which averaged over $70 per metric ton during the quarter ended December 31, 2019 compared to. Factors contributing to weak spot freight rates in the shipping industry. on the daily spot rates assessed by the Baltic assessment for very large gas carriers (“VLGC”) for a period of three (3) months, starting from 1 January 2017 pursuant to the terms and conditions as stipulated in the Contract. Spot day charter rates for LNG carriers have hit their highest levels since mid-2012 on the back of low prompt availability of vessels in both the Atlantic and Pacific basins. One distinguishing feature of the LPG shipping market is that there are often energy substitutes for LPG products, such as naphtha ( Engelen and Dullaert, 2012 ). it also involves squeezing as much revenue as possible out of the ship. Number of LPG carriers on order at the start of 2015. Tanker equity prices dropped 15-20% this week led by Nordic American Tankers (NAT) falling about 25% since Monday. number of vessels for a further 12 months at rates below those they agreed last year. The Baltic Exchange explained. [email protected] 5% decrease from the $24,695 TCE rate from the same period in the prior year, primarily driven by relatively flat spot market rates coupled with increased bunker prices. Oil Snaps Five-Day Rally. Based on the review, major literature gaps are identified, namely the lack of coverage for LPG and product tanker shipping market, the inadequacy of current. VLGC earnings in the spot market (on the benchmark AG-Japan route) averaged $12,500pd; way below the break-even rate of $21,000pd. The Panama Canal expansion could lead to further decreases. 14 mmbtu which would make 5. Decrease in VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East. For example, the company started the year with a dry bulk fleet of 13 Panamax vessels, which it anticipates can capture spot rates of $10,000 per day in 2017. VLGC spot rates determined by US-Asia LPG price differentials > high fleet utilization due to low spot rates. Rates in the VLGC sector are coming under pressure due to an increasing tonnage list and production cuts. VLGC earnings in the spot market ( averaged $12,500pd, far below that the break-even rate of $21,000pd. A VLCC typically cost about $121 million ($116 million for a 5 year old) and the spot market rate is about $100,000 per day. 26 % 74 % 95 % 5 % 93 % 7 % 91 % 9 % 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % October 1973 Average 1980 Average 1990 October 2000 Arabian Light/Dubai Shipping. 7 million a month by January and as low as US. The rate for the Houston-to-Japan route remained unchanged at a three-month low of $115/MT while the Houston-to-Europe route fell to $65/MT. VLGC spot rates fell another 10% last week, compared. It is likely that the daily spot rates will fluctuate according to the demand for liquefied gas. Clear weather on the horizon? 38% of the companies reported about sustainability, however only 29% of these companies have their reports verified. This tonnage influx, which equates to a 30 per cent increase in the VLGC fleet over the past 12 months, had driven VLGC spot rates down to US$1. Very Large Gas Carrier rates on the key Middle East-Japan route have touched near four-month highs around $79/mt this week and looked poised to surpass $80/mt for the first time since October 2015 as more ships head to North America and Northeast Europe to lift LPG amid Saudi supply concerns and growing demand in. energy-related carbon dioxide (CO2) emissions declined by 2. • VLGC capacity was not enough to facilitate increased flows from the US to Asia, leading to high freight rates. During 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. A source said the high number of LPG vessels being put on time charter was to capitalize on low freight rates. LPG (the "Company" or "Dorian LPG"), a leading owner and operator of. Rates in the VLGC sector are coming under pressure due to an increasing tonnage list and production cuts. VLGC spot rates are currently averaging around $60,000 per day, higher than they usually are at this time of year. Freight rates improved slightly due to an expansion of geographic LPG price spreads. Weekly quotes in US$ pr. around USD 450,000 per month. Drewry’s VLGC Middle East to Japan benchmark doubled in the first six months of 2014, reaching an all-time high of USD 117 per tonne in April. 7 million on 53 operating days for the three months ended December 31, 2015 from $0. 1 Spot Rates 2 Spot Earnings / TCE 3 Timecharter Rates 4 Trip Charter Rates 5 Own Brand Indices 6 Secondhand Prices 7 Resale Prices 8 Delivered Prices 9 S&P Activity 10 Newbuilding Prices 11 Scrap Prices 12 Fixtures 13 FFAs 14 Port Costs 15 Opex 16 Repayment Estimate 17 Contracting Activity (new orders) 18 Fleet Size 19 Fleet losses 20 Fleet. STAMFORD, Conn. On the other, a flurry of fixtures has left vessel availability looking much shorter in the West. Dorian LPG has 18 ECO VLGC newbuildings due for delivery in 2014, 2015 and 2016 from HHI and Daewoo Shipping and Marine Engineering Ltd. Also, cargo availability increased in […]. BIMCO Standard Gas Voyage Charter Party For the LPG, Ammonia and Liquefied Petrochemical Gas Trades Code Name: GASVOY 2005 PART I Printed and sold by Fr. Demand is projected to be slightly lower than fleet growth on a volume basis, but a massive expansion of US LPG. According to Clarksons Platou Securities, VLGC spot rates between the Middle East and Japan reached $51,300 per day as of June 4, up 12 percent week-on-week and up 21 percent month-on-month. It serves as a document of title, a contract of carriage and a receipt for goods. The Avance Gas index can be interpreted as a quote for average VLGC spot rates. around USD 450,000 per month. Net, the effect is 2% reduced VLGC demand in 2019/'20. Average BLPG for 2015 ended at USD 91. India , China , and Vietnam continue to be among the leading importers of LPG in Asia. [email protected] 14 mmbtu which would make 5. 1 Spot Rates 2 Spot Earnings / TCE 3 Timecharter Rates 4 Trip Charter Rates 5 Own Brand Indices 6 Secondhand Prices 7 Resale Prices 8 Delivered Prices 9 S&P Activity 10 Newbuilding Prices 11 Scrap Prices 12 Fixtures 13 FFAs 14 Port Costs 15 Opex 16 Repayment Estimate 17 Contracting Activity (new orders) 18 Fleet Size 19 Fleet losses 20 Fleet. We forecast VLGC fleet utilization of 79% in 2018 and 87% in 2019, representing average VLGC spot rates of $17k/d and $35k/d, respectively. 50/tonne, LPG is now more attractive as a petrochemical feedstock. Group Rates Available For More Information, Call 344-8111 VLGC VroLogc 2. Therefore, US LPG prices are depressed, on a netback basis, incentivizing LPG cracking and consumption of LPG for chemical manufacturing. SIMON SAYS: Europe – From Russia with Love Submitted by Simon Hill on Mon, 07/01/2019 - 16:10 The North West European market used to be really exciting, it was the happening place, new production in both UK and Norwegian sectors, lots of load ports such as Sullom Voe, Braefoot Bay, Grangemouth, Flotta, Tees and Karstoe. Drewry’s VLGC Middle East to Japan benchmark doubled in the first six months of 2014, reaching an all-time high of USD 117 per tonne in April. org to reserve a spot. The VLGC fleet has expanded at the rate of 7%, quarter-on-quarter over the last four quarters, fast outpacing cargo demand growth. 95% to Near Zero as Virus Slams Freight. While MEG-West routes stayed flat at WS 35, several MEG-East voyages have been fixed this week at WS 55, brokers tell Tankerworld, up from around WS 50 last week. rates at refi neries also supported the market. it also involves squeezing as much revenue as possible out of the ship. Why LPG Rates Have Soared FreightWaves: VLGC spot rates are double to triple what they were last year. VLGC spot rates are sensitive to not only the fleet supply/demand balance but also changes in regional LPG prices. Second-hand prices stabilised at cyclical low levels. , spot) $433. • 2016: Spot freight rates capped by price differentials in the international LPG market, traders netbacks only positive at low freight rates • 2016: Over 20 large US cargoes cancelled in Q3 A globalized LPG market has evolved VLGC spot rates determined by US-Asia LPG price differentials > high fleet utilization due to low spot rates 0 10. Actual VLGC spot rates vs our historical and current forecasts We foresaw the 2016 rate collapse already in our first forecast in early 2014 31 37 73 83 21 13 18 25 32 -10 20 30 40 50 60 70 80 90 (Dk) Actuals/Forecast Mar/14 May/14 Aug/14 Nov/14 Jan/15 Mar/15 Jun/15 Feb/17 Jun/17. Keep informed on Dollar Index Spot updates. 8 per ton on the benchmark Baltic route, nearly halving to USD 21 per ton after starting the quarter at USD 36 per ton. 1 Spot Rates 2 Spot Earnings / TCE 3 Timecharter Rates 4 Trip Charter Rates 5 Own Brand Indices 6 Secondhand Prices 7 Resale Prices 8 Delivered Prices 9 S&P Activity 10 Newbuilding Prices 11 Scrap Prices 12 Fixtures 13 FFAs 14 Port Costs 15 Opex 16 Repayment Estimate 17 Contracting Activity (new orders) 18 Fleet Size 19 Fleet losses 20 Fleet. 938 per tonne on 15 July, rates to ship LPG on very large gas carriers (VLGCs) have since been falling. Company specifics: Market fundamentals:. VLGC demand in 2019. Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. m, 1983 build was $15,000 lower at $850,000 pcm. 7 million, mainly attributable to the decline in LPG spot rates and lower fleet utilisation despite an increase in fleet size. A spot voyage is typically a single round trip that is priced on a current or spot market value. Spot vessel rates for Algeria, West Africa, and Houston to Japan were approximated at about USD210/tonne, USD215/tonne and USD310/tonne respectively. Rates in the VLGC sector are coming under pressure due to an increasing tonnage list and production cuts. 7 million per month by July last year. (2008) the time charter. Owing to these restrictions a new design of VLCC was made by Stena which is a wide body VLCC with a suezmax depth. It will be interesting to see what this means for western rates moving forward LPG Rates Spot Market (USD/Month) This week Change VLGC (84 000 cbm) $1,400,000 $50,000. Revenue may be steady on a long-time charter or irregular on the spot market. LNG: In the East, there has been some fresh spot requirement activity last week while in the West, the focus has been on FOB cargo tenders ex Idku (04 cargoes in May) and Algeria (01 cargo in April). 6 million, down by USD 12. North Sea offshore slump 'worse than 2014' as OSV spot rates plunge 77% TradeWinds 10:47 Petronas cheers Indonesia oil and gas flows Upstream 10:39 Teekay Tankers secures $32. Activity became quieter at the end of the month. Spot Rates ($ per day) Quarterly VLGC 8yr Old Prices ($ MM) VLGC rates have fallen by 75% YOY in 2016 leading to a 23% reduction in secondhand prices $10,000. - Its services are free of any charge. VLGC spot rate rises to 10-month high. Year Gross rate Redelivery Built DWT Type Per day Earliest Latest Raraka 2012 76,037 Panamax Spot N/A N/A 2017 78,700 VLGC $30,000 Jun. 2 million per month, and has since then been on a downward spiral, with a year-end level of about. Add To Watchlist. MOL operates more than 100 Capesize bulkers. DryShips, investor George Economou's publicly-listed bulker firm, announced Thursday that it would make a new foray into gas carriers with a $334 million deal for up to four newbuild VLGCs. Avance Gas commercial operation is based in Oslo, Norway. Pay after April 12 and the entry fee is $75 Weekly Play • Modified Stableford scoring system—stroke play. Since 1992, spot rates have averaged 10-20% below the yearly average in February to April, and 0-15% above. Houston to Japan route is holding near one-month highs of around $107/mt or more. It will be interesting to see what this means for western rates moving forward LPG Rates Spot Market (USD/Month) This week Change VLGC (84 000 cbm) $1,400,000 $50,000. Of these, 70% operate on medium- to long-term contracts, while the remaining 30% operate on the spot The Capesize bulker BAOSTEEL EMOTION (Port Walcott, Australia) Fiscal 2011 in Review In fiscal 2011, we secured stable profits. Elengy – LNG Cargo Transfer – Calculation methods and rounding-offs 3/14 Version of April 2015 These energies are evaluated by determining the transferred volumes and/or masses, the LNG density, and the mean gross heating value on a volumetric and/or mass basis for the duration of the cargo transfer:. Fuel oil exports from Singapore and Malaysia to China dropped to 550,000-650,000 mt and 650,000-750,000 mt respectively in March. 5 million from the same quarter last year mainly due to the decline in LPG spot earnings and a smaller fleet size. Multifractal features of spot rates in the Liquid Petroleum Gas shipping market Steve Engelena,⁎, Payam Norouzzadehb, Wout Dullaertc,d, Bahareh Rahmanib a Joachim Grieg & Co, 2 Karenslyst Allé, Oslo 0213, Norway b Christian Albrechts University of Kiel, 40 Olshausenstraβe, Ravensberg 24118, Germany. 95 MILLION RS. Freight Rate: per ton (of 2240 lbs. My strengths are: - Arb Trading, (paper and physical ) VLGC - Pressurized vessels chartering and product. Subject: VLGC spot rates' 20% rise looks to be a spike Add a personalized message to your email. The strengthening of the market in 2002 through 2004 leading to the 2004 boom can be ex-plained simply by ton-mile demand. Multifractal features of spot rates in the Liquid Petroleum Gas shipping market. The Avance Gas index can be interpreted as a quote for average VLGC spot rates. Market and Freight Rates VLGC rates averaged USD 13,600 per day in the fourth quarter of 2016, or USD 26. India's GDP (gross domestic product) grew at a healthy rate of 7. Today, rates of VLCCs are anywhere between $200,000-300,000 a day, according to analyst Poten & Partners. According to Drewry’s report, “ample vessel supply squeezed the freight market”, resulting in VLGC earnings in the spot market on the benchmark AG-Japan route averaging US$ 12,500 per day. m, 2002 build, was concluded $30,000 lower at $970,000 pcm, a 28,000 cu. Cold spot inspection It is possible to check the integrity of the insulation during the loaded passage by entering the cargo and cofferdam spaces and look for cold spots were ice has formed. 30, 2015 /PRNewswire/ -- Dorian LPG Ltd. Spot business Broker commission negotiated and invoiced within the same business year. Kim Ullman calls for moderation in tanker upturn. 1 Tanker Market Outlook Prepared for Olympic London Ship Finance Forum – Jan 23, 2019 Henry Curra –Global Head of Research. Declining VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East to pick up growing volumes of LPG tonnes from the US Gulf to global markets, trade and shipping sources said this week. 1m per vessel in working capital for the Helios Pool 2 ECO VLGC CONSTELLATION 84,000 2015 Hyundai HI Bahamas ECO VLGC CRESQUES 84,000 2015 Daewoo SME Bahamas. A 35,000 cu. VLCC rates have arguably been hit the hardest from peak to trough, although that provides little to no consolation to other vessel classes. Platou: VLCC rates increase explosively. 6 million for the three months ended December 31, 2014, which represent time charter and voyage charters earned for our five VLGC vessels and our pressurized 5,000 cbm vessel, increased $18. Contact Ben Spartz at [email protected] (2008) used 727 weekly observations for the period 1992-2005 and applied a non-parametric Kernel estimator to capture the spot rate process. Operating in a rapidly evolving and complex market, our customers rely on our industry-leading LPG and Ammonia team to provide the full range of gas-related services including ship, commodity, derivative and asset broking. BW LPG: VLGC TCE rates averaged US$14,800 per day. MOL operates more than 100 Capesize bulkers. Decrease in VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East. VLGC Day Rates Softer, yet Utilization Remains High • Incremental VLGC fleet growth has been absorbed without severely impacting utilization thus far (i. 5% from first to second quarter on the back of improved fleet utilisation and slightly firmer spot rates. LNG: In the East, there has been some fresh spot requirement activity last week while in the West, the focus has been on FOB cargo tenders ex Idku (04 cargoes in May) and Algeria (01 cargo in April). 61 per barrel (WS240) for an intra- Med cargo, versus $0. It serves as a document of title, a contract of carriage and a receipt for goods. What it got was a 2020 with marine fuel prices at their lowest for several years. NFX BLPG1 VLGC Middle East Gulf-Japan Tanker Freight Financial Futures (LPGQ) FUTURES (2nd Spot) M10 INTEREST RATES - GOVERNMENT DEVELOPMENT BONDS 10-YEAR FIXED. Time Charter Equivalent - TCE: A shipping industry standard used to calculate the average daily revenue performance of a vessel. VLCC The introduction of the new higher 2020 Worldscale (WS) flat rates saw rates adjust downwards, accordingly with the market. Timing of carriers purchase and sell track record remains. Over 600 vessels under full third-party ship management: 300 bulk carriers, 200 tankers and 100 container ships. Natural Gas Intelligence (NGI), is a leading provider of natural gas, shale news and market information for the deregulated North American natural gas industry. Took delivery of five vessels under our ECO-design VLGC newbuilding program, the Continental, the Constitution, the Commodore, the Cresques, and the Constellation Repurchased 352,100 shares of our. VLGC Freight Rates Recover Pic: BW LPG The Very Large Gas Carrier (VLGC) freight rates started to recover towards the end of the first quarter as U. I have heard this question many a times from a lot of functional consultants. VLGC spot rates fell another 10% last week, compared. The currency code for Rupiahs is IDR, and the currency symbol is Rp. The Avance Gas index can be interpreted as a quote for average VLGC spot rates. Container shipping rates remained steady over the past week, as trade tensions between the U. VLGC spot rates are currently averaging around $60,000 per day, higher than they usually are at this time of year. VLGC Freight Houston-Japan. Avance Gas' CEO Christian Andersen believes spot market VLGCs are being kept in high demand by Middle East and US exports. exports of LPG, a by-product of shale gas, increased throughout the year. Shipowners are hoping for a better future as annual fleet growth is set to slow down from 16% in 2016-17 to a more manageable 5% over 2018-19. 8 per ton on the benchmark Baltic route, nearly halving to USD 21 per ton after starting the quarter at USD 36 per ton. Demand is projected to be slightly lower than fleet growth on a volume basis, but a massive expansion of US LPG. (Bloomberg) Charter rates for the largest oil tankers hauling Middle East crude to Asia slid the most since January this week as the supply of cargoes declined. LNG); it is not as big project-based as LNG. In respect of final settlement, the Floating Price will be a price in USD and cents per metric tonne based on the average of the assessments as made public by the Baltic Exchange for the relevant route for each business day (as specified below) in the determination period. However, elevating the futures curve by a mere USD 10/bbl to around USD 60/bbl enables theoretical VLGC rates around USD 40-50k/d. Add To Watchlist. 843 pmt, which is the second highest average value since the all-time high of USD 92. Fleet utilisation (%) versus VLGC spot rate (USD/day) LPG shipping sector report 86% 77% 77% 80% 81% 85% 93% 100% 89% 85% 85% 91% 93% 94% 35,000 44,000 47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 70% 75% 80% 85% 90% 95% 100% 105% YOY (%) USD/day Fleet utilisation (%) VLGC spot rate (USD/day) 17% 18% 9% 2% 4%. Owners of very large gas carriers (VLGCs) are upbeat about 2020, with the market in a recovery period. 95 MILLION RS. 8% in 2019, slightly below 2017 levels ›. Avance Gas’ fleet continued trading spot and on spot-indexed time-charter contracts in the quarter ended September 30. West-of-Suez diversion may boost VLGC rates through Aug If current bunker rates in Fujairah are sustained and VLGC spot rates remain unchanged August will be a bumper month for shipowners. Between them, these two concerns account for 22 VLCCs, one Aframax, 10 MRs and. attend this event. Natural Gas Intelligence (NGI), is a leading provider of natural gas, shale news and market information for the deregulated North American natural gas industry. Our dry cargo desks are strategically located in the Fearnleys offices in Oslo, Shanghai, Hong Kong, Singapore, Mumbai and London. 9 million, or 137. An Aframax tanker typically cost about $65 million ($62 million for a 5 year old) and the spot market rate is about $33,500 per day. back to neutral levels, and it may need to continue raising rates for another two or three times, former Fed Governor. Why LPG Rates Have Soared FreightWaves: VLGC spot rates are double to triple what they were last year. What it got was a 2020 with marine fuel prices at their lowest for several years. See the complete profile on LinkedIn and discover Harry’s connections and jobs at similar companies. 7 million from the same quarter last year mainly due to a decline in LPG spot rates. VLGC Freight Persian Gulf-Japan • VLGC capacity was not enough to facilitate. Could LNG shipping spot rates hit $250,000/day? Published 19 October 2018. Fleet utilisation (%) versus VLGC spot rate (USD/day) LPG shipping sector report 86% 77% 77% 80% 81% 85% 93% 100% 89% 85% 85% 91% 93% 94% 35,000 44,000 47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 70% 75% 80% 85% 90% 95% 100% 105% YOY (%) USD/day Fleet utilisation (%) VLGC spot rate (USD/day) 17% 18% 9% 2% 4%. Revenues of $32. GE owns 6 Gas carriers now of which 3 added in the current FY from just one Very Large Gas Carrier (VLGC) as on March’16. Middle East tanker charter rates, up more than 90 percent since the start of the year, appear to have reached a plateau, shippers said. Actual VLGC spot rates vs our historical and current forecasts We foresaw the 2016 rate collapse already in our first forecast in early 2014 31 37 73 83 21 13 18 25 32 -10 20 30 40 50 60 70 80 90 (Dk) Actuals/Forecast Mar/14 May/14 Aug/14 Nov/14 Jan/15 Mar/15 Jun/15 Feb/17 Jun/17. By: ASC Staff. Shipping cost USD 5,3/barrel Shipping cost USD 3,0/barrel !. Of these, 70% operate on medium- to long-term contracts, while the remaining 30% operate on the spot The Capesize bulker BAOSTEEL EMOTION (Port Walcott, Australia) Fiscal 2011 in Review In fiscal 2011, we secured stable profits. VLGC Day Rates Softer, yet Utilization Remains High • Incremental VLGC fleet growth has been absorbed without severely impacting utilization thus far (i. 80 CRORES 12 Tanker. VLGC rates on the Persian Gulf to Japan route have slid to near four and half-month lows of around $52/mt. saw spot charter rates for available VLGC as relatively flat, following recent sharp. See the complete profile on LinkedIn and discover Harry’s connections and jobs at similar companies. 86 million TCE) at the last day of the year. Factors contributing to weak spot freight rates in the shipping industry. The influence of freight rates on newbuilding prices is rather indirect, through secondhand prices. Rates in the VLGC sector are coming under pressure due to an increasing tonnage list and production cuts. On 21 July, rates averaged USD129. Number of LPG carriers on order at the start of 2015. BW LPG generated VLGC daily TCE of US$15,100 per day based on calendar days. Time charter equivalent is calculated by taking voyage revenues. Golar LNG 'remains committed' to shifting fleet into new vehicle. Can VLGCs defy 2017 expectations after promising start? 04 Jan 2017. it also involves squeezing as much revenue as possible out of the ship. But, new International Maritime Organisation (IMO) regulations on bunker fuels may restrain freight rates and profits. Firm Western freight rates pull LPG vessels to US to avoid weak Asian rates. Optimal freight rate management for VLCC Jonas Røn Thorsgaard Steen S070573 Kongens Lyngby 2013 IMM-M. By: ASC Staff. We have lowered our outlook on Q3 VLGC rates, while our Q2 rate forecast was reasonably in line with what has been observed. Avance Gas transports LPG from either Middle East Gulf or US Gulf to destinations in Europe, South America, India and Asia. 843 pmt, which is the second highest average value since the all-time high of USD 92. The increasing demand for LPG especially in the Asia Pacific region is the primary driver bolstering the demand for very large gas carriers. 1 Spot Rates 2 Spot Earnings / TCE 3 Timecharter Rates 4 Trip Charter Rates 5 Own Brand Indices 6 Secondhand Prices 7 Resale Prices 8 Delivered Prices 9 S&P Activity 10 Newbuilding Prices 11 Scrap Prices 12 Fixtures 13 FFAs 14 Port Costs 15 Opex 16 Repayment Estimate 17 Contracting Activity (new orders) 18 Fleet Size 19 Fleet losses 20 Fleet. VLGC slide pack Company specifics: Market fundamentals: Disclaimer: The publisher currently has no investments in the company. Q2CY18 saw average VLGC spot rates going down to below $10,000 a day and now they are more in the region of $20,000 per day. LNG shipping rates now far exceed crude-tanker rates. Based on the current Brent crude oil futures curve, and assuming unchanged US LPG prices, we estimate VLGC rates below USD 10k/d until 2020E. opportunities and experienced advise, in the fast moving dry cargo market. (2008) used 727 weekly observations for the period 1992-2005 and applied a non-parametric Kernel estimator to capture the spot rate process. The Pressurized vessel segment has solidified its recovery throughout. Multifractal features of spot rates in the Liquid Petroleum Gas shipping market. VLGC spot exposure US$129 per metric ton (2019) US$64 per metric ton (2018) Improved VLGC Time Charter Equivalent. EBITDA for the second quarter amounted to USD 39. 7 million per month by July last year. really tough year in 2017. VLGC rates on the Persian Gulf to Japan route have slid to near four and half-month lows of around $52/mt. As of 31 December 2018, the Company was 38% covered for the year 2019 with 5,396 voyage days covered at an average daily TCE rate of $10,061, leaving 8,834 calendar days open on the current fleet for the rest of the year. 8 per ton on the benchmark Baltic route, nearly halving to USD 21 per ton after starting the quarter at USD 36 per ton. 1 Spot Rates 2 Spot Earnings / TCE 3 Timecharter Rates 4 Trip Charter Rates 5 Own Brand Indices 6 Secondhand Prices 7 Resale Prices 8 Delivered Prices 9 S&P Activity 10 Newbuilding Prices 11 Scrap Prices 12 Fixtures 13 FFAs 14 Port Costs 15 Opex 16 Repayment Estimate 17 Contracting Activity (new orders) 18 Fleet Size 19 Fleet losses 20 Fleet. prices soared, which was one factor in the strengthening of western rates. 6 million for the three months ended December 31, 2014, which represent time charter and voyage charters earned for our five VLGC vessels and our pressurized 5,000 cbm vessel, increased $18. While MEG-West routes stayed flat at WS 35, several MEG-East voyages have been fixed this week at WS 55, brokers tell Tankerworld, up from around WS 50 last week. Unsurprisingly, we can find a similar seasonal pattern in historical VLGC spot earnings. 59 the sec-ond year. Multifractal features of spot rates in the Liquid Petroleum Gas shipping market Steve Engelena,⁎, Payam Norouzzadehb, Wout Dullaertc,d, Bahareh Rahmanib a Joachim Grieg & Co, 2 Karenslyst Allé, Oslo 0213, Norway b Christian Albrechts University of Kiel, 40 Olshausenstraβe, Ravensberg 24118, Germany c Institute of Transport and Maritime Management Antwerp, 24 Keizerstraat, Antwerp 2000, Belgium. ("Hyundai"), on September 26, 2014 - which is trading in the spot market. Fearnleys Weekly Report Week 18 - April 27, 2020. VLGC BW Aries, and in February 2015 held the ship naming ceremonies for BW Carina, BW Gemini, and BW Leo. 7 million from the same quarter last year mainly due to a decline in LPG spot rates. Tanker report - Week 47. 95 MILLION RS. Optimal freight rate management for VLCC Jonas Røn Thorsgaard Steen S070573 Kongens Lyngby 2013 IMM-M. Meanwhile, the price differential between LPG in the US and Asia has averaged a mere $60 per tonne in the third quarter of 2016, down from $208 per tonne over the same period last year. Declining VLGC freight rates in Asia and improving US rates are pulling ships to the West from the East to pick up growing volumes of LPG tonnes from the US Gulf to global markets, trade and shipping sources said this week. Since 2010 I have been involved in commodities trading. Over the year, the majority was trading LPG. DryShips, investor George Economou's publicly-listed bulker firm, announced Thursday that it would make a new foray into gas carriers with a $334 million deal for up to four newbuild VLGCs. • VLGC capacity was not enough to facilitate increased flows from the US to Asia, leading to high freight rates. Keep informed on Dollar Index Spot updates. LPG vessel orders grow, but spot charter rates flat for now. 1m per vessel in working capital for the Helios Pool 2 ECO VLGC CONSTELLATION 84,000 2015 Hyundai HI Bahamas ECO VLGC CRESQUES 84,000 2015 Daewoo SME Bahamas. The championship course with its manicured fairways and superb greens nestles on the banks of the River Dee and is overlooked by the glorious Welsh hills. 89/MT in December, compared with $129/MT in November. Mon, 04 May 2020 17:28. Houston-Europe rates fell $6. 4m charters with Chevron TradeWinds 10:10. It is likely that the daily spot rates will fluctuate according to the demand for liquefied gas. According to the company's financial results, in 2017 its VLGC fleet achieved an average earning per VLGC of US$18,600/day (versus a Baltic Exchange-reported spot rate of US$13,500/day). VLGC earnings in the spot market ( averaged $12,500pd, far below that the break-even rate of $21,000pd. -100 0 100 200 300 400 500 600 700. Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. m, 1989 build, was $40,000 lower at $920,000 pcm and a 24,000 cu. Spot VLGC rates for Middle East-Japan trade were nearly $59. The TCE rate for our fleet was $20,973 for the three months ended September 30, 2018, a 16. BW LPG sees better market sentiment for 2018 vs 2017 entering the market after VLGC rates peaked above $100,000 per day in 2015 vs currently around $12-13,000 per day in the spot market. Q2CY18 saw average VLGC spot rates going down to below $10,000 a day and now they are more in the region of $20,000 per day. VLGC spot rates fell another 10% last week, compared. Avance Gas’ fleet continued trading spot and on spot-indexed time-charter contracts in the quarter ended September 30. Spot VLCC activity remained robust this week and rates in several markets managed to pick up a few Worldscale points with brokers reporting increasing exports from the MEG. Fleet utilisation (%) versus VLGC spot rate (USD/day) LPG shipping sector report 86% 77% 77% 80% 81% 85% 93% 100% 89% 85% 85% 91% 93% 94% 35,000 44,000 47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 70% 75% 80% 85% 90% 95% 100% 105% YOY (%) USD/day Fleet utilisation (%) VLGC spot rate (USD/day) 17% 18% 9% 2% 4%. Please Note: Only individuals with an active subscription will be able to access the full article. The lower figure represents Poten’s assessment of the contracted volumes to which US exporters are committed for 2015. Firm Western freight rates pull LPG vessels to US to avoid weak Asian rates. Add To Watchlist. Read More. However, shipowners and traders with their own vessels were cautious. The rates listed in the table are designated as Worldscale Flat or WS100 and are revised annually.