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The LNG market saw a strong recovery in the Atlantic basin, while Pacific rates remained mixed, with larger vessels facing continued pressure.
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Atlantic LNG spot rates surged sharply, and time charter rates strengthened across six-month, one-year, and three-year periods, reflecting improved market confidence.
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The LPG market showed signs of tentative stabilization after recent tariff-driven volatility, although underlying sentiment remains fragile.
LNG Market Overview
The LNG market experienced a notable shift during the week, marked by strength in the Atlantic basin and mixed trends in the Pacific. On the BLNG1 Gladstone–Tokyo route, rates for 174k cbm vessels declined by $1,000, closing at $22,200 per day, whereas 160k cbm vessels edged up by $200 to $13,800 per day. The ongoing softness for larger vessels highlights continued weakness in Pacific demand.
In the Atlantic, rates rose sharply across major routes. The BLNG2 Sabine–UK Continent route saw 174k cbm vessels surge by $15,100 to $36,500 per day, while 160k cbm vessels increased by $7,300 to $19,200 per day. Similarly, the BLNG3 Sabine–Tokyo route posted strong gains, with 174k cbm vessels rising by $13,900 to $41,500 per day, and 160k cbm vessels gaining $7,800 to settle at $22,900 per day. These increases reflect a tightening market and renewed demand in the Atlantic basin.
The time charter market also strengthened. Six-month charters rose by $3,200 to $31,050 per day, one-year charters increased by $1,325 to $34,400 per day, and three-year charters edged up by $550 to $53,850 per day, signaling growing confidence across the forward curve.
LPG Market Overview
The LPG market was relatively subdued this week following a period of tariff-driven volatility. Fixing activity slowed noticeably, and while freight rates continued to decline, the pace of the drop moderated, suggesting possible early signs of stabilization, though sentiment remains delicate.
On the BLPG1 Ras Tanura–Chiba route, rates slipped by $2.26 to settle at $51.333, with TCE earnings dropping by $2,676 to $35,002 per day. Although Middle East tonnage lists have thinned slightly, it has not yet been enough to boost market sentiment.
In the Atlantic, the BLPG2 Houston–Flushing route recorded a $1.25 fall to $53.75, with TCEs down by $1,963 to $53,316 per day. The BLPG3 Houston–Chiba long-haul route also weakened, declining by $1.67 to $101.667, while TCE earnings fell by $1,458 to $37,243 per day. The arbitrage window to the East remains under pressure, and without meaningful changes, the market is expected to remain relatively static in the short term.
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Source: Baltic Exchange
