Sponsored By

Top Greek shipowners optimistic on LNG charter rates

Top Greek shipowners are optimistic about the charter rate outlook for liquefied natural gas (LNG), although expressed concerns over the tender process and shorter periods adopted by some charterers.

Marcus Hand, Editor

June 4, 2018

2 Min Read
Kalyakan - stock.adobe.com

John Angelicoussis, chairman Angelicoussis Shipping Group, speaking at The Future of LNG Shipping 2018 event held by ABS, was optimistic about the market trend. “I personally feel the bottom of the market in a cyclical sense was in early 2016 when we hit the bottom for energy prices, at that time it was the lowest rates for LNG. I think from there on for every year we see higher rates depending on the season.”

Gaslog executive chairman Peter Livanos was also positive although saw a maximum as to how much rates could rise. “We’re definitely in a short term tightening cycle although I do believe in the medium to long term rates will be capped in terms of the economic value of the ability to buy and sell gas in different locations around the world,” Livanos said.

“So I don’t see medium and long term rates developing as a continuous basis as an upward trend, but rather reaching a steady state situation.”

Seatrade Maritime News is reporting Live From Posidonia 2018

Similarly George Procopiou, chairman of Dynacom Tanker Management, did not expect rates to soar but to reach sustainable levels. “I do believe the rates of today are low so if you add the running cost of an organisation they don’t add up. Nobody can subside somebody else’s business so they have to rise to levels that are sustainable. I don’t believe in extremes, it’s a steady business with high capital, but low returns.”

Asked by session moderator Michael Tusiani, chairman emeritus of Poten & Partners, about the shift by some charterers to a tender process and shorter terms there were concerns that it was starting to commoditise the market.

Angelicoussis stated: “With the tender process charterers, even high quality charterers use the tender process to bring rates.

“Liquefaction plants are not built for five to seven years, why are we getting five to seven years deals with option periods? We take all the risk for the vessel and basically no return on our capital sometimes.”

Read more about:

LNG

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like