Insight
Will there be an LNG Shipping oversupply in 2024?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The LNG market could be oversupplied with shipping capacity in 2024. More LNG carriers than ever are expected to be delivered into the fleet next year. There is limited, organic LNG supply growth forecasted, with risk attached to several project start-ups. And, thanks to strong spot LNG demand in Europe, tonne-mile demand for LNG carriers is generally soft. On the face of it, the supply of LNG ships will outpace demand for them, putting downward pressure on spot charter rates. But we predict a more nuanced reality. Several factors will impact LNG shipping demand in a big way next year. Will lacklustre Asian spot LNG demand result in low shipping utilization? Or will the fleet be kept busy with increasing operational adjustments and trading? In this insight, we present the upside and downside risks to an oversupplied LNG shipping market in 2024.
Table of contents
- Executive Summary
-
A record number of ships will be delivered, driving the risk of oversupply
- 60 standard LNG carriers will be delivered to the fleet next year
- Timing of supply additions will be critical
-
Market dynamics are increasing LNG shipping demand
- Panama Canal utilizationhas fallen: will it return as cross-basin trade ramps up?
- Value creation through trading and optimisation is rising
- Will the market receive more shipping capacity than is needed?
Tables and charts
This report includes the following images and tables:
- Sabine Pass to Tokyo Bay voyage costs comparison
- Proportion of US LNG – to Asia by selected route
- Global Floating Storage* YoY comparison
- NW Europe LNG contango opportunity 2023*
What's included
This report contains:
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