Raising the Roof: How High Can Spot Charter Rates Go?

5 June 2017: “Over the past two weeks our LNG shipping opinions have addressed the increased residual value risk facing the LNG shipping industry. An example discussed the estimated capex charter rates needed for vessels built in 2015 to achieve a 9% unlevered return on their current book value. Depending on the assumed remaining lifetime, between 30 to 40 years, charter rates need to range between US$ 47,500 to US$ 49,500 per day. If opex costs add US$ 15,000 to 18,000 per day, will charter rates reach the levels required by shipowners?” Please fill out the following form to access the full article.