Solvang is expecting an upturn in the VLGC market to be short-lived having seen impairments tip its shipping business into the red during the fourth quarter.
Oslo-listed Solvang says a temporary arbitrage between US LPG and Far East pricing aided ton-mile demand in the fourth quarter.
“However, with further extensive newbuild deliveries, as well as product pricing levels that on average yield little room for arbitrage between regions, the freight volume is not enough to drive the rates much higher, and is expected to turn downwards into 2017,” it said in its fourth quarter report today.
The
