BW LPG India, a 52%-owned entity of the BW Group, has successfully completed the sale of the Very Large Gas Carrier (VLGC) 'BW Elm'. The vessel, constructed in 2007, will continue to be utilized for trading purposes by its new owner. This divestment resulted in a substantial financial gain of $36 million for BW LPG India.
The sale underscores the current strength in the secondhand market for VLGCs, where older vessels are still commanding firm prices. This trend allows owners to monetize aging assets effectively, contributing positively to their financial performance.
For freight forwarders and logistics professionals involved in the gas shipping sector, this transaction indicates a healthy market for specialized tonnage. While not directly impacting freight rates for general cargo, it suggests that capacity in the LPG segment remains in demand, even for older vessels. This could indirectly influence newbuild orders or fleet modernization strategies by carriers, potentially affecting future capacity availability and pricing dynamics in the long term.
