Re: LPG shippers - crash
That may be partly true about following the price of oil, but there is a lot of misunderstanding about the place of the liquid petroleum gases (propane & butane) in the global energy. Bottom line, I think it will prove to be a substantial and sustained market due in part to the rise of propane as a feedstock for the manufacture of polypropylene bottles and the use of propane for residential cooking and heating by the growing middle classes in developing countries of Asia and Africa. Hence, BW LPG's efforts to establish a foothold in a fully integrated LPG market and distribution in India (including the manufacture of propane tanks) and XOM partnering in a multibillion dollar plastics (PDH) plant in China. The newest LPGCs are also equiped to carry ammonia which growing as a fuel fo shipping and, obviously, fertilizer. Add in the relatively small (but growing) number of shipowners and It's a very robust sector. Biggest threats I see are a global recession and competition from the big names like Maersk.