LNG rates fell this week due to low activity, while the LPG market continued to rise across all routes despite some uncertainty in the Atlantic. Period contracts remained mostly stable in LNG, with potential gains in LPG, reports Baltic Exchange.
LNG
There was bearish sentiment last week in the LNG sector. With little activity on the spot side, there has been a slow continued downward movement on the levels. Sentiment is low, but as can happen with LNG a change of sentiment can quickly turn the tide on rates. The BLNG1 Aus-Japan run last week lost for both size ships, with the 174cbm moving down to $79,400 and, while the 160cbm TFDE vessel fared better, it still moved down to a close of $65,800. BLNG2 Houston-Cont saw the largest drop last week with both ships losing over 10% of their starting value. The 174cbm 2-stroke fell to $60,600, while the 60cbm TFDE closed at $48,500. BLNG3 Houston-Japan did better, but with no real intra basin movement currently and the ARB working against it, there is unstable footing. The 174cbm closed at $82,600 while the 160cbm finished at $67,000.
Period has been quieter, with little being reported out for longer terms and on shorter term more ships available has put pressure on multi-month options. Our six-month period unchanged at $102,150, with the one-year period dropping $1375 to $80,300 and the three-year unchanged at $84,550.
LPG
The LPG continued its bull run last week, with all three routes gaining, although with few fixtures being reported out in the West the legs of the bull are being tested in the Atlantic. For BLPG1 Ras Tanura-Chiba there was a rise of $8 to close at $63.5 and a daily TCE of $44,003. Several fixtures were reported as the week closed out and some brokers expect a slight firming still.
Across in the Atlantic, the Baltics BLPG2 Houston-Flushing run moved up by $4.75 to a close of $64.75 but it had sat flat there since the beginning of the week after an initial push. Meanwhile, TCE on BLPG2 rose by $7,882 to $66,402. BLPG3 Houston-Chiba with only two fixtures reported did well to move up by $8.167 and a close price of $117.667 reflected the Indonesia bound cargo from Freeports’ reported rate of $116.5. The TCE earning rose by $6,953 to a close of $48,794.
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Source: Baltic Exchange
