Panama Canal to cut U.S.-Asia LPG ship rates

The widened Panama Canal will cut costs to ship U.S. cooking and heating gases to Asia by shortening voyages, effectively lowering tanker demand just as yards build more of the ships. The canal expansion scheduled to finish in 2015 will shorten U.S.-to-Asia voyages for very large gas carriers to 25 days from 42 days going around Africa. At the same time, yards will construct the most new vessels since 2008, according to data from Clarkson Plc (CKN), the world’s largest shipbroker.

U.S. terminal operators are expanding to take advantage of record exports of liquefied petroleum gases, a byproduct of surging domestic oil and natural-gas output. The wider canal will require fewer ships for shorter voyages, eliminating the premium for tankers loading in the U.S. even as it stokes trade. LPG globally will become cheaper, which incites more trade and is always positive for shipping volumes. “The amount of ships being delivered is too much even with the big step up in demand, and the market will get worse and then basically collapse” a specialist said.

Transport rates for VLGCs to Asia from the Middle East jumped 54 percent this year to $62.31 a metric ton and are heading for the highest annual average since at least 2004, according to the Baltic Exchange in London. Rates from the U.S. are more than three times higher. Each ship, 750 feet long and 120 feet wide, can hold about 80,000 cubic meters (2.8 million cubic feet) of propane or butane.

Construction to double the canal’s capacity is 64 percent complete, the Panama Canal Authority said on its website Sept. 10. The expanded waterway will be able to handle ships as long as 1,200 feet and as wide as 160 feet, against the current 965 feet and 106 feet, data on the website show. Seven of the VLGC fleet’s 154 vessels can use the canal now, according to data from IHS Maritime, a Coulsdon, England-based research company.

Laisser un commentaire

Entrez vos coordonnées ci-dessous ou cliquez sur une icône pour vous connecter:

Logo WordPress.com

Vous commentez à l'aide de votre compte WordPress.com. Déconnexion / Changer )

Image Twitter

Vous commentez à l'aide de votre compte Twitter. Déconnexion / Changer )

Photo Facebook

Vous commentez à l'aide de votre compte Facebook. Déconnexion / Changer )

Photo Google+

Vous commentez à l'aide de votre compte Google+. Déconnexion / Changer )

Connexion à %s

%d blogueurs aiment cette page :