BW LPG, the world’s largest owner of VLGCs, locked in two of its ships into term deals with a key Indian charterer
The Oslo-listed company signed one-year charters for the the 84,000-cbm BW Lord and BW Cedar (both built 2007) with India's Hindustan Petroleum.
The ships have scored a rate of $1.3m per month each, which equates to $31.2m in aggregate revenue.
The deals come amid an expansion of the BW Group spin-off's joint venture in India.
The venture with Global United Shipping India already has three LPG vessels, the 84,000-dwt BW Boss (built 2001), 82,000-cbm BW Energy (built 2002) and 82,000-cbm BW Birch (built 2007).
“We further strengthen BW LPG’s strong base in India,” CEO Anders Onarheim said of the deal. “India is the world’s second largest LPG import market, and our JV is now the largest VLGC operator in India.”
Also on Monday, BW LPG revealed that its 83,270-cbm BW Confidence (built 2006), which is understood to have gone to an undisclosed buyer for $43m.
BW LPG's India charters come amid increased activity in the period market, though at lower levels than what the Indian market are thought to be paying.
US-based Dorian LPG has fixed out two vessels for a year. The 84,000-cbm Cougar (built 2015) has gone to Total for Total at $1.1m per month and the 82,000-cbm Captain John NP (built 2007) fixed by Geogas at $1m per month.
Indian shipowners are also active, the 82,000-cbm Jag Viraat (built 2007) is extended by Indian Oil Co (IOC) or $1.3m.
The spot market for VLGCs currently stands at some $81,000 per day, compared to $54,000 per day a month ago.
Oslo broker Fearnleys said that the exports of LPG from the US have been more robust than anticipated, as has the demand for LPG east of the Suez Canal.
Delays in the discharge harbours and the Panama Canal, and a high number of ships going into dry dock has led to a “very firm market” in the last few weeks.
The shipbroker does not expect that the levels can be maintained over time but that the market will remain strong at lower levels into 2021.
