Market for large VLGC vessels might see a downturn as new ships launch to sea, says chief analyst in Pareto Securities.
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Very large gas carriers, VLGC, face a possible slow period when many new vessels launch to sea, says chief analyst in Pareto Securities Eirik Haavaldsen to Norwegian business daily Finansavisen.
”We believe VLGC markets will suffer a significant dive upon ship deliveries as Asian demand halts”, he says.
Investors also very well could face difficulties in generating returns compared to recent years, Haavaldsen expects.
”We don’t think that it [returns -ed.] will be an easy feat in 2023. Uncertainties cling to global economy forecasts, and the start of the year might be troublesome, especially if Chinese consumer spending fails to go up,” he says.
”Tanker and bulk markets, however, are looking at continued low fleet increase, and it is our belief that tanker markets will perform well in the coming year.”
Commenting to WPO, several analysts have all pointed to signs of the tanker segment performing well during 2023. Among these profiles is SEB Norge shipping analyst Jon Nikolai Skåland and ditto at Kepler Cheuvreux Anders Redigh Karlsen as well as senior analyst with DNB Markets Jørgen Lian.
”We are positive about outlooks for the tanker market next year with supply growth being limited, and we expect demand to gradually increase again,” said Redigh Karlsen back then.
