Gas carriers – Gas carriers struck by Asian `flu`

For much of the 1990s, international trade in LPG, LNG and other gas commodities has grown steadily, with increases averaging around 5 per cent per annum. For the next few years, much lower rates of growth are anticipated.

Operators had been hoping that the Asian economies would continue to drive demand for seabourne gas transportation upwards. With many of the region`s main economies still in deep trouble, and no certainty that the worst is over, Asian demand for LNG and LPG is faltering, even in countries like China and India which have been less severely affected by the general economic and currency problems. Consequently, gas carriers operators are reviewing their trade forecasts downwards.

This is likely to have a knock-on impact on the newbuilding market. A few orders have been placed this year – Bergesen has contracted two 78,500m3 LPG gas carriers with Stocznia Gdynia, with options for four more – but generally there is a feeling that the market has more than enough tonnage to go around.