Large LNG carriers are the hot commodity in the new-building market ?

VesselsLink data shows that there were 78 LNG new-building orders in the first five months of 2024, an increase of approximately 129% compared to 34 orders in the same period last year.

Currently, the new building price of a 174,000 cubic meter large LNG ship has reached US$269 million, a record high, an increase of about 6.1%. The value of LNG ships of all types and ages has increased.

For example, the value of a 20-year-old, 140,000 cubic meter large LNG ship has increased from US$62.85 million to US$72.4 million, an increase of approximately US$10 million this year. That's up 15% year to date.

Currently, the order volume for large LNG ships is equivalent to 64% of the active fleet. As of now, large LNG ships account for 74% of total orders, followed by QMAX LNG ships, accounting for about 23%. Looking back at history, orders for QMAX LNG carriers were mainly concentrated around 2000, which indicates that these orders may be part of a fleet renewal plan.

In 2024, Qatar leads the list in order volume, accounting for 44% of total orders, the United Arab Emirates accounts for about 13%, and China ranks third with 9%. The income of this type of ship currently remains stable at a low level.

Overall, spot rents increased by about 12% month-on-month, but fell slightly by about 1% year-on-year. However, these positive developments have been driven by geopolitical uncertainty, increased volumes of LNG being shipped to EU ports to replace Russian gas previously transported by pipeline, and a push for newer, greener ships.

Market sentiment ensures that demand for LNG vessel newbuilding remains strong.