- LNG freight rates dipped this week, particularly in the Atlantic, despite recent term charter optimism.
- LPG rates surged across all major routes, driven by stronger trading sentiment following the US-China tariff cuts.
This week’s Gas Freight market report highlights key movements in both the LNG and LPG sectors. While LNG spot rates continued to face downward pressure, particularly in the Atlantic, the LPG market saw strong gains across major routes, supported by renewed trading interest and positive policy developments, as reported by the Baltic Exchange.
LNG Freight Market Sees Continued Downturn
LNG freight rates slipped this week, with the Atlantic market seeing the biggest drops. In the Pacific, the Australia–Japan route saw a slight dip, with daily earnings for both 174k and 160k CBM vessels now at $22,600. The Atlantic routes, however, declined more sharply. On the US Gulf to Continent route, 174k CBM vessels dropped 18% to $31,800 per day, while smaller vessels fell to $16,400. The US Gulf to Japan route also fell, closing at $40,300 and $21,100 for 174k and 160k vessels, respectively. Despite the drop in spot rates, the term charter market picked up, with rates for six-month to three-year periods showing healthy increases.
US-China Tariff Cuts Improve LPG Gains
The LPG market strengthened across all major routes this week. The gains were largely driven by improved trading activity after the US and China announced tariff reductions. The AG to Japan route rose to $68.67 per metric ton, pushing earnings above $53,000 per day. US Gulf routes also moved up—freight to the Continent reached $62.50, while the longer-haul US Gulf to Japan Route climbed to $117.67 per metric ton. These increases reflect stronger demand and growing interest in long-haul shipments.
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Source: BalticExchange
