The LNG carrier market is under pressure due to the oversupply of available tonnage and the small increase in demand for liquefied natural gas, GasLog Partners, a company of the GasLog group, pointed out in its analysis of the financial results for 2024.
The company, which has a privately owned fleet of 10 LNG carriers, as well as four more that it has chartered on a bareboat basis, registered revenues of 356.2 million US dollars in 2024, down 41.5 million dollars compared to 2023. On the contrary, the company’s profits increased, reaching 150.9 million US dollars, from 138.7 million in 2023.
According to GasLog’s analysis, spot market charter rates have shown a continuous downward trend throughout the past year, with rates for vessels carrying 160,000 cubic meters of 0.1% boil-off TFDE, as reported by Clarkson Research Services Limited, averaging 42,236 US dollars per day in 2024, down 56% year-on-year and 48.1% compared to the five-year average.
Despite the logistical challenges arising from the restrictions in the Suez and Panama Canals, market fundamentals point to an excess supply of ships, GasLog noted, adding that given the minimal increase in LNG trade volume, the market is experiencing oversupply, which is now reflected in ship availability lists and declining freight rates.
