Speculative ordering of new LPG carriers could turn the market sour, an industry consultancy warned.
Drewry said newbuilding activity during the first seven months of this year is already double what was inked during the whole of 2011.
40 newbuildings totalling 1.2m-cbm have been ordered in the first half of 2012; twenty-five and fifteen ships in the first and second quarters respectively.
The LPGC fleet stood at 1,160 ships aggregating 19.8m-cbm at the end of July, with the orderbook at 107 ships of 2.7m-cbm.
“Shipowners should proceed with their investment activity carefully and prudently, while also refraining from frenetic newbuilding activity as rate of growth of LPG in the Middle East, which is likely to remain the major supplier to Asia, has almost stagnated.”