The LNG shipping market may face worse earnings prospects in 2021 and 2022 due to a heavy newbuilding delivery schedule and incremental fuel costs as a result of the IMO’s new sulphur cap, according to some leading players.
While the sector has been a star performer in recent years due to double-digit growth in tonne-mile demand, Teekay Gas chief executive Mark Kremlin warned that many ships ordered on a speculative basis are set to enter trading in the coming years.
