Expected lifespans for LNG carriers are falling as the world fleet expands with a fresh tranche of modern ships.
“Companies were using 40-year amortisation profiles, but this is now largely reduced to 35 years, with most looking to reduce that further,” one specialist sale-and-purchase broker said. “The shorter life issue is a big debate.”
Poten & Partners’ Gary Smith said that as conservatism in the industry has slowly diminished, shipowners will probably move to do their economics over a shorter 20 to 25-year period.
