VLGC rates to defy deliveries in early 2016

Record high newbuilding deliveries at the start of next year will not stand in the way of VLGC rates passing $100,000 per day, DNB Markets says.

Analysts at the Norwegian finance house believe the market will defy seasonality and the arrival of 20 new VLGCs in the first quarter of 2016.

Nicolay Dyvik, Oyvind Berle and Petter Haugen believe earnings will be aided by the arbitrage between US and Asian propane prices and suggest rates of over $100,000 per day could be seen in the first three months of next year.

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