According to the Baltic Exchange’s Gas Report for Week 42, the liquefied natural gas (LNG) market experienced notable gains, while the liquefied petroleum gas (LPG) sector faced challenges due to ongoing trade tensions.
LNG Market Dynamics
The LNG market saw increased activity, particularly in the Atlantic Basin, leading to higher rates. The BLNG2 US Gulf–Continent route strengthened significantly, with 174,000 cbm vessels’ rates rising by $5,400 to $29,300 per day and 160,000 cbm ships up $4,000 to $16,200 per day. Similarly, the BLNG3 US Gulf–Japan route also gained ground, with 174,000 cbm vessels up $6,900 to $34,100 per day and 160,000 cbm tonnage rising $4,300 to $18,900 per day. These increases were supported by limited vessel availability and firming chartering interest in the Atlantic Basin.
In contrast, the BLNG1 Australia–Japan route experienced a slight dip, with 174,000 cbm vessels slipping $200 to $23,700 per day, while 160,000 cbm tonnage held steady at $12,700 per day. Pacific demand remained muted amid balanced tonnage.
Time charter levels remained stable to slightly lower. The six-month rate eased $150 to $29,750 per day, the one-year term slipped $1,000 to $32,500 per day, while the three-year period was unchanged at $50,500 per day, reflecting a steady but cautious sentiment ahead of winter demand.
LPG Market Trends
The LPG market experienced a soft week, with rates easing across all major routes as sentiment weakened due to ongoing trade tensions between the US and China.
On the BLPG1 Ras Tanura–Chiba route, rates fell $2.83 to $60.83 per metric tonne, with time charter equivalent (TCE) earnings slipping $2,371 to $47,388 per day. Moderate Middle Eastern activity has kept the tonnage list well balanced.
The BLPG2 Houston–Flushing route declined $4.25 to $64.75 per metric tonne, while daily returns dropped $5,332 to $69,909 per day amid softer US export momentum and narrowing arbitrage economics.
The BLPG3 Houston–Chiba route lost $9.00 to $116.67 per metric tonne, with TCE earnings down $6,316 to $50,786 per day. Despite some early-week interest, longer-haul demand was dampened by broader market caution and uncertainty surrounding ongoing trade tensions.
Market Outlook
The LNG market’s strength is attributed to tightening vessel availability and increased chartering interest, particularly in the Atlantic Basin. However, the LPG market faces challenges due to ongoing trade tensions, leading to softer rates and reduced demand.
For maritime professionals, policymakers, and industry enthusiasts, these developments underscore the importance of monitoring geopolitical factors and their impact on global shipping markets.
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Source: Baltic Exchange
