LNG and LPG Freight Markets Continue to Firm on Tight Tonnage

By
Mfame Editor
-
15

  • Australia–Japan LNG Rates Continue to Firm.
  • US Gulf–Continent Sees Sharpest LNG Gains.
  • US Gulf–Japan LNG Rates Extend Upward Trend.

The LNG market saw a boost this week, thanks to a continued shortage of available vessels and steady demand across both regions. The limited number of ships in the Atlantic has been keeping rates strong, reports Baltic Exchange.

Australia–Japan Rates Keep Climbing

On the BLNG1 Australia–Japan route:

  1. 174k cbm vessels saw an increase of $2,400, bringing their rates to $45,400/day.
  2. 160k cbm ships went up by $1,900, now sitting at $28,800/day.

The mood remains optimistic as the availability of prompt tonnage tightens even more.

US Gulf–Continent Experiences Significant Gains

The BLNG2 US Gulf–Continent route reported impressive increases:

  1. 174k cbm carriers jumped by $6,400 to reach $67,100/day.
  2. 160k cbm vessels rose by $4,600, now at $44,900/day.

These rates are being bolstered by a very limited number of vessels available.

US Gulf–Japan Route Grows Stronger

On the BLNG3 US Gulf–Japan route:

174k cbm rates increased by $4,800, now at $71,700/day.

160k cbm ships saw a rise of $3,400, bringing their rates to $46,400/day.

Mixed Signals in the Period Market

Period rates showed a mix of movements:

  1. Six-month: up $1,700 to $33,150/day
  2. One-year: down $400 to $33,750/day
  3. Three-year: down $1,750 to $51,500/day

Overall, the longer-term outlook seems more balanced.

LPG Market Gains Ground with Tightening Tonnage

The LPG market continued its upward trend, driven by a tightening supply of vessels in both regions and steady fixing activity in the West. While demand in the East has eased a bit, the overall sentiment remains positive.

Middle East–Japan Rates on the Rise

On the BLPG1 Ras Tanura–Chiba route:

  1. Rates climbed by $10.00 to $70.83/tonne.
  2. TCE earnings increased by $11,151 to $57,968/day.

The BLPG2 Houston–Flushing route saw a gain of $5.75, now at $72.50/tonne, with daily returns improving by $8,568 to $79,514/day.

Transpacific LPG Rates Continue Higher

On the BLPG3 Houston–Chiba route:

  1. Rates rose $8.75 to $133.92/tonne.
  2. TCE earnings increased $6,882 to $63,719/day.

Strong transpacific demand and sustained Western fixing supported the gains.

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Source: Baltic Exchange