|The LGC segment performed very well in 2015 as freight rates boomed together with the strong VLGC market. The LPG market was the demand driver this year as last year, with LPG arbitrage conditions making larger LPG tonnage high in demand. At the end of 2015, only five LGCs were trading ammonia. Most vessels were committed on time charter or own program.
No vessels were scrapped, but for the first time since 2009 the fleet received new vessels, with three LGCs being delivered to Solvang, taking the fleet to 23 vessels. Latsco entered the LGC market, adding two orders to the orderbook, which at the end of 2015 contained two vessels.
Going forward, the softening fundamentals of the VLGC and midsize market will give negative spillover effects and the future demand from the LPG market is fairly dependent on the crude oil price.
LGC Rates LGC Fleet Age