Fleet growth to put pressure on VLGC

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High scheduled deliveries and low demolition prospects will drive unwanted fleet growth[ds_preview] of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to the latest edition of the LPG Forecaster by Drewry. VLGC rates remain under pressure on account of ample vessel supply and weak arbitrage opportunities caused by low LPG fuel prices. With 64 additional ships due for delivery next year, fleet growth is expected to accelerate to 12 % in 2017, further exacerbating the supply gut. Shipowners are hoping that a recent revival in VLGC demolitions might help keep fleet growth in check.