Top Greek shipowners are optimistic about the charter rate outlook for LNG, although express concerns over the tender process and shorter periods adopted by some charterers. John Angelicoussis, chairman of Angelicoussis Shipping Group,speaking at ABS’s The Future of LNG Shipping 2018 event,said:“I personally feel the bottom of the market in a cyclicalsense wasin early 2016 when we hit the bottom for energy prices; at that time it wasthe lowest ratesfor LNG. I think from there on for every year we see higher rates depending on the season.”

Gaslog executive chairman, Peter Livanos was also positive.“We’re definitely in a short term tightening cycle although I do believe in the medium to long term rates will be capped in terms of the economic value of the ability to buy and sell gasin different locations around,” he said. “So I don’t see medium and long term rates developing as a continuous basis as an upward trend, but rather reaching a steady state situation.”

Similarly George Procopiou, chairman of Dynacom Tankers Management, did not expect rates to soar but to reach sustainable levels. “I do believe the rates of today are low so if you add the running cost of an organisation they don’t add up. Nobody can subside somebody else’s business so they have to rise to levels that are sustainable. I don’t believe in extremes, it’s a steady business with high capital, but low returns.” Discussing the shift by some charterers to a tender process and shorterterms, there were concernsthatit wasstarting to commoditise the market. Angelicoussis stated: “With the tender process charterers use the tender process to bring rates. “Liquefaction plants are not built for five to seven years, why are we getting five to seven years deals with option periods? We take all the risk for the vessel and basically no return on our capital sometimes.”

Source: Posidonia Events