BW LPG sees positive medium-term outlook for VLGC rates

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BW LPG is positive on the medium-term outlook for the VLGC market despite recent falls in rates.

In its fourth quarter results statement BW LPG said that following V-shape recovery in VLGC rates in Q3 and Q4 last year with a peak of over $100,000 per day rates had come down significantly in late January. The shipowner expects rates to remain under pressure in the second quarter.

However, the company sees an improvement further out and BW LPG said: “Despite the recent correction in VLGC freight rates, we continue to hold a positive outlook for the medium term VLGC market.

“This is driven by continued high shipping inefficiencies, resilient US LPG production, gradual recovery in Middle East Production and strong underlying demand for LPG.”

BW LPG has fixed approximately 81% of spot and time charter days in Q1 at an average rate of $41,000 per day.

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