LNG Sector: A Calm Before Any Shift
In the LNG sector, trading remained largely flat as market participants adopted a cautious stance. Activity was muted, and rates marginally eased across key routes:
- On the Australia → Japan (BLNG1) corridor, 174,000 cbm vessels declined by USD 600 to USD 24,200/day, and 160,000 cbm units dropped USD 200 to USD 13,100/day.
- The US Gulf → Continent (BLNG2) route saw 174,000 cbm earnings fall USD 500 to USD 21,800/day, while 160,000 cbm tonnage slipped USD 400 to USD 10,600/day.
- Along the long haul US Gulf → Japan (BLNG3) route, 174,000 cbm vessels gave up USD 1,200 to reach USD 25,200/day, while 160,000 cbm units dipped USD 600 to USD 12,500/day.
Time charter levels held a defensive line:
- Six-month TC stayed at USD 29,900/day
- One-year USD 33,500/day (down USD 750)
- Three-year benchmark remained fixed at USD 50,500/day
The overall tone: equilibrium, with neither demand nor supply exerting strong directional pressure.
LPG Market: Steady Start, Softer Finish
The LPG market began the week with relative stability, but softness crept in midweek, largely driven by elevated U.S. inventories and a tepid arbitrage environment.
- On Ras Tanura → Chiba (BLPG1), rates eased USD 3.25 to USD 64.00/metric tonne; TCE returns declined USD 3,907/day to USD 49,749/day
- The Houston → Flushing (BLPG2) route saw a drop of USD 4.50 to USD 69.00/metric tonne, with TCE earnings down USD 6,785 to USD 75,176/day
- Over Houston → Chiba (BLPG3), rates fell USD 8.17 to USD 125.83/metric tonne; TCE returns retreated USD 6,791 to USD 56,852/day
What began as a stable environment gave way to increased pressure as carriers adjusted to weaker arbitrage signals and a rising tonnage list.
Insights
For shipowners, charterers, and logistics planners, this week’s report underscores the challenges of navigating demand uncertainty. The LNG segment, though stable, offers little encouragement for aggressive positioning. LPG’s softening suggests caution for stakeholders relying on U.S. supply or arbitrage strategies.
From a policy or strategic outlook, such periods highlight the importance of building resilience—be it in demand generation, flexible contracting, or fleet redeployment strategies that can absorb short-term volatility.
Source: Baltic Exchange
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