India’s Bharat Petroleum Corp has concluded one year charters for two Indian-controlled VLGCs at firm rates often seen in that market.
The two vessels, which are both nearly 20 years old, and have been fixed for about the same rates as modern and more expensive VLGCs are currently earning.
Brokers say the 77,000-cbm Jag Vishnu (built 2002) has been taken at $1.05m per month or $35,000 per day.
Great Eastern Shipping bought the 18-year-old vessel in September as the Grace River from K Line of Japan for $32m.
Bharat Petroleum has also secured the 82,000-cbm Mareena Gas (built 2001). The Varun Shipping vessel is set to earn $980,000 per month.
Premium rates
One European shipbroker described the Indian market as one of the few which now yield premium rates for owners.
While majority of the period deals for Indian business are done with Indian owners, international players have been keen to get a slice of the market.
Idan Ofer’s Eastern Pacific has reportedly fixed the 35,000-cbm Kent (built 2007) to Bharat Petroleum for up to two years at some $730,000 per month. Both BW LPG and Eletson Corp have also concluded Indian business.
But other brokers are less enthusiastic and say charterers can be late paying hire and that Indian trade tax can also create problems.
The deals appear attractive at face value compared with the wider market, such as the 18 month deal with Petrobras for Dorian LPG’s 84,000-cbm Cobra (built 2015).
The five-year-old vessel is reportedly set to earn less than $1m per month during the charter period. In 2015, the vessel LPG was reported fixed to Shell for two years at $2m.
There have been a number of other period deals reported for VLGCs recently.
Glencore has taken the 82,000-cbm Hellas Glory (built 2008) for a year from the Greek owner Latsis. The rate is reported to be around $930,000 per month. The vessel was ordered in 2005 for $91m, which was a high price.
The VLGC spot market currently stands at some $54,000 per day or $1.62m per month.
