High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) next year, putting freight rates under pressure, according to Drewry.

The fleet growth is anticipated to climb to 12% in 2017 with 64 additional ships due for delivery.

The recent Ballast Water Treatment System (BWTS) regulation requiring all ships to have an in-built BWTS or retro-fit by September 2017 or on their next survey has provided hopes of higher demolitions. However, Drewry believes that there is little scope for demolitions given the young age-profile of the fleet.

Drewry's senior analyst Shresth Sarma thinks that in a weak market, although the average scrapping age could drop largely in a weak market, they do not expect this to happen currently as there are no signs of panic demolitions yet.