Very Large Gas Carrier Market - Global Forecast and Industry Outlook, 2014 to 2020

Albany, NY -- (ReleaseWire) -- 02/18/2015 -- Increasing LPG exports from the U.S. due to rising production of shale gas has resulted in increasing demand for very large gas carriers (VLGC). These gas carriers are used for transporting LPG and have a capacity of approximately 82,000 cubic meters. With the increasing demand of LPG from developing economies the demand for large carriers is also increasing to optimize the logistics cost and increase profitability margins. The enlarged Panama Canal is projected to open in late 2016; this would decrease the transit route between North America and Asia Pacific region. The trade between the U.S and Asia Pacific region is anticipated to increase at a rapid pace owing to the decrease in transportation costs. High LPG prices in the Middle East restrained Asian consumers to buy LPG from this market leading to increased demand from the U.S. market. The U.S shale gas revolution is the primary game changer for the increasing demand for very large gas carriers. Freight rates of VLGC's are expected to increase at a rapid rate owing to the opening of the enlarged Panama Canal.