MSI Consultancy Case Study – Market Review for Investment Opportunity

A leading US-based alternative investment firm focused on performing and distressed credit-related investments was working on a project in the small, pressurised LPG carrier market and requested a study, including an overview of the current market and outlook for earnings and asset values, to help inform their potential investment.

MSI performed a detailed overview of the structure of the pressurised LPG carrier market, including regional analysis of vessel deployment, growth in inter-regional trading for larger vessel sizes, vessel ownership by size and region, and a description of the overlap between pressurised and semi-refrigerated LPG carriers.

Also included was a comprehensive assessment of the market’s demand-drivers. This included an overview of the global LPG and petrochemical gas markets (production, consumption and seaborne trade), as well as focusing in on key cargoes and regions.

Details on the current and future supply-side disposition in the pressurising LPG carrier market were provided. This included detailed analysis of the standard fleet metrics by ship type and size: contracting, deliveries and deletions.

We performed a review of recent investment trends in newbuild activity, owners’ preferences and accompanying SWOT analysis of major owners and provided a forecast supply/demand balance for sub-23 k CuM LPG carriers as well as forecast earnings and asset values for representative pressurised LPG carriers. MSI prepared a market report which addressed all parts of the scope as described above. The final deliverable was provided in MS PowerPoint with supporting data and graphs in MS Excel.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.