The current surplus in LNG shipping capacity will take a long time to be absorbed even with the rapid growth in new LNG supply over the next few years. It is 2021 before we see a need for additional ships beyond what is in the current orderbook. Spot/short term freight rates may see some improvement from the lows recently visited but they are likely to remain well below the level required to make an investment return for much of the rest of this decade. On the shipping supply side a new degree of restraint is evident with just four new orders so far in 2016. But there is still a huge backlog of new LNG ships to deliver and a large number of recently delivered ships that have yet to find long term employment. Falling demand for LNG in Japan and South Korea has hit shipping hard by reducing long haul trade from the Atlantic Basin and the Middle East. It has also diminished the prospect of large volumes of new US LNG exports making the shipping demand hungry trip to Asia in the future.