The shipping rates to transport Liquefied Natural Gas have fallen to around USD 50,000 a day, the lowest in over four years, Bloomberg reports.
The rates of shipping LNG are heading towards further decline, and are almost three times lower than in 2012, when daily rates surged to USD 140,000.
Lower shipping rates are hurting shipowners, but are good news for sellers and end users of LNG.
The industry analysts do not expect a turnaround in this downward trend for the next couple of years.
The rising LNG carrier fleet, a drop in liquid fuel prices and a lower demand for LNG in Asian markets are pegged as the main culprits for the drop in shipping rates.
Last year, LNG carrier operators ordered 67 new ships.
The rates might bounce back to as much as USD 100,000 a day once the US LNG projects take off, and start shipping LNG cargoes to Asia, according to industry analysts.
World Maritime News Staff