In January 2026, Southwest Shipping concluded a charter deal for three second‑hand LPG carriers under its fleet. The daily hire rate reached USD 28,000 per vessel, representing a 30 % premium over conventional fuel‑powered ships of the same tonnage. All three chartered vessels were constructed between 2012 and 2014, with an age of 12‑14 years. After upgrades and retrofitting, they are equipped with an LPG dual‑fuel propulsion system that cuts CO₂ emissions by 20 % and SOₓ emissions by 99 %. Fully complying with IMO EEDI Phase III environmental standards, these vessels have become scarce assets in the charter market.

The charter boom for green second‑hand vessels is driven by mounting decarbonisation pressure across the global shipping industry. Green‑tonnage orders accounted for 61.8 % of China’s newly‑secured shipbuilding contracts in 2025, triggering a sharp surge in demand for eco‑retrofitted second‑hand ships. A senior official from Southwest Shipping stated that the company has long‑standing expertise in gas‑carrier operations. Its second‑hand vessels have undergone systematic green retrofits, including optimising bow‑stern hull profiles to reduce sailing resistance and upgrading propulsion systems for improved energy efficiency. The three vessels in this transaction have been secured by a European energy enterprise for LPG shipping routes from the Mediterranean Sea to Northern Europe.

Market statistics indicate that the charter transaction volume of green second‑hand vessels rose 58 % year‑on‑year in 2025, with retrofitted LNG dual‑fuel and methanol‑powered ships being the most sought‑after assets. In terms of charter rates, daily hire for second‑hand dual‑fuel LPG carriers of 10,000‑15,000 m³ capacity has climbed from USD 20,000 in 2024 to USD 28,000‑30,000, while rates for unmodified conventional vessels have remained around USD 20,000. Industry experts point out that as IMO’s 2030 carbon‑reduction targets draw near, non‑compliant second‑hand ships will face the risk of being phased out. The charter premium for green‑retrofitted second‑hand tonnage is expected to widen further and may exceed 40 % in 2026.