Page 20 - Annual Review 2021 full

Indian National Shipowners’ Association

Tanker index Gas spot cargoes
Following quantities of gas was imported by Indian
PSUs over the previous two years.

VLGC
2020 2021
Average (MT) 246,250 220,182
Total (MT) 2,955,000 2,422,000

Gas index
140.00
Baltic Tanker 22 Jan 25 22 Jan 24 22 Jan 21 22 Jan 20 22 Jan 19 Baltic Gas INDEX
Indices 120.00
Clean (BCTI) 543 -3 546 -5 551 -7 558 -9 567 -14
100.00
Dirty(BDTI) 691 -1 692 0 692 +1 691 -1 692 -2
80.00
LPG tanker market
60.00
The LPG sector is seeing continued upside in
earnings from 2019-20 amid a firm rebound in 40.00
demand. Today, the VLGC market continues to be
buoyed by inefficiencies, with rates rising either 20.00
side of Suez. 0.00

In the West, delays encountered at the Panama Baltic LPG 25 Jan 22 24 Jan 22 21 Jan 22 20 Jan 22 19 Jan 22
Canal by vessels without a pre-booked slot were Indices
up to 18 days at times and this continued to push BLPG :
44,000mt
the rates in the market. As a result, the itineraries LPG fully ref, 58.79 -1.78 60.57 -1.29 61.86 -2.07 63.93 -3.64 67.57 -2.72
of many ships remained uncertain and vessel Ras Tanura -
availability remained tight and rates increased to Chiba ($/T)
reflect this. Meanwhile inefficiencies in the East © Clarkson Research Services Limited 2022
were also seen, with delays at discharge ports Indian coastal market
persisting.
Indian coastal LPG trade is carried entirely by
In addition to the Panama Canal issue, USA Indian flag ships due to uncertainties and delays at
experienced extended days of fog and tonnage was Indian ports.
also stuck there; plus many ships were rerouted
via the Cape of Good Hope. These voyages took Coastal shipping
longer and ships remained occupied. In the fourth Indian coastal shipping continues to suffer due to
quarter of 2021, volumes of gas from USA to Asia the policy shift brought in by the General Orders
were more than from the Middle East. This has also Nos. 1 of 2018, 2 of 2018 and 3 of 2018 which
ensured robust rates. permitted foreign flag vessels to transport EXIM
laden containers, agri products, horticulture,
The outlook for the gas sector remains robust fisheries, animal husbandry commodities and
in 2022 given that substantial part of the fleet is fertilizers between two or more Indian ports without
scheduled to undergo dry docking next year. In fact obtaining a license from the Director General of
all ships that were delivered in 2016 are scheduled Shipping.
for a 2-3 week or an even extended dry docking. This
will reduce ship supply. The issue of congestion at These orders are detrimental to and damage the
ports and other transit hubs is expected to continue interests of the existing Indian flag industry and
into the next year which will also push up vessel Indian seamen with not a single commensurate
demand.
benefit to the Indian economy or India. It has been
reported by the press and by the trade at large that
In all, 19 new vessels are expected to be added the objectives as stated in the said Orders have not
to the fleet in Indian 2022. The same number has been helpful at all. These have not resulted in any
been added in the previous two years and it hasn’t fall in freight rates nor has it see any diversion of
had any negative impact on the rates. traffic from Indian ports to Colombo in the past 2
years. A clear failure.

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