- The UP World LNG Shipping Index (UPI) declined by 0.38% last week, closing at 162.63 points, while the S&P 500 gained 1.74%.
- LNG tankers rerouted from the Gulf of Mexico to Europe due to rising gas prices in colder weather, causing a decline in Atlantic spot rates ($9,000/day) while Asian rates held steady ($15,500/day).
- Tsakos Energy Navigation (-8%) and New Fortress Energy (-5.7%) led the declines, while Qatar’s Nakilat (+2.8%) and Awilco LNG (+1.4%) posted gains.
The UP World LNG Shipping Index (UPI) experienced a slight decline last week, reflecting shifting global LNG trade patterns, declining spot rates, and the scrapping of older tankers. However, long-term prospects remain strong as demand for LNG transport continues to grow, reports LNG Shipping Stocks.
UPI & Market Performance
The UP World LNG Shipping Index (UPI), which tracks publicly traded LNG shipping companies, dropped 0.38% to 162.63 points last week, while the S&P 500 gained 1.74%.
The performance of both indices can be seen in the weekly data chart.
Shifts in LNG Trade Routes
A notable trend last week was the rerouting of at least seven LNG tankers from the Gulf of Mexico to Europe, driven by increasing gas demand and higher prices due to colder weather.
Interestingly, these vessels bypassed the Panama Canal, opting for the longer route via the Cape of Good Hope, further impacting the LNG shipping market.
Spot Rate Trends & Scrapping of Older Vessels
Spot rates continued to decline in the Atlantic ($9,000/day) while holding steady in Asia ($15,500/day).
Meanwhile, the trend of scrapping older LNG tankers persists, with the 29-year-old Hyundai Greenpia being the first tanker scrapped this year.
This aligns with industry-wide efforts to phase out inefficient, high-emission vessels amid stricter environmental regulations.
Stock Performance: Biggest Gainers & Losers
Among the UPI constituents, Tsakos Energy Navigation (-8%) and New Fortress Energy (-5.7%) posted the steepest losses. Golar LNG (-4%), Excelerate Energy (-3.9%), and Korea Line Corporation (-3.8%) also saw declines.
Conversely, Qatar’s Nakilat (+2.8%) and Awilco LNG (+1.4%) led the gainers, followed by Japan’s NYK Line (+1.3%) and Mitsui O.S.K. Lines (+1.1%).
Market Outlook: Cautiously Optimistic
Despite short-term fluctuations, the LNG shipping industry maintains a positive long-term outlook, supported by stable demand and strategic management initiatives.
With new contracts and market-driven adjustments, UPI remains well-positioned for growth.
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Source: LNG Shipping Stocks
