LNG
With few actual fixtures reported this week, the LNG market has seen further corrections down. At the same time last year we had been publishing at $405,290 for BLNG1g a value $275,782 higher than that with which we published today. For Aus-Japan a fall of $34,100 on the week gave the index a value of $129,508. A quiet lead up to winter market, few enquiries and tonnage availability outstripping current vessel demand is putting downward pressure on current rates. Unlike the issues faced last year with LNG availability, lack of ships and increased demand of sourcing LNG from alternative sources it seems so far, the market is on much weaker footing – at least from a freight rate perspective.
Out in the US the routes are relatively stable seeing small adjustments down only. However, when compared to the published price from a year ago, it is a very different story. With values closer to $450,000 last year on both BLNG2g and BLNG3g versus less than half of that now; brokers are understandably confused as to where the bottom may be. Rates for Houston-UKC BLNG2g fell to $131,341 while US-Japan lost just over $10,000 to finish at $159,055. There are still huge delays going through the Panama canal which will potentially shore up some rates, but with greater vessel availability this affect is so far muted.
LPG
It has again been quite a tumultuous week for the LPG Market. On BLPG1 Ras Tanura-Chiba we saw initially a reasonable gain moving up around $11 by mid-week, but then as has been the fashion of late, it dropped off nearly $13 to close at $117.143 giving a daily TCE earning of $102,640. With only a few fixtures reported with November laycans, there has been an easing of sentiment and despite the rate fluctuations, expectations are that it will remain uncertain even after the upcoming Saudi Aramco acceptances over the weekend.
The Atlantic has been steadier with both routes in the US losing value overall, huge delays in Panama coupled with lower cargo demand has put BLPG2 Houston-Flushing on a similar slide as BLPG1; gaining early on to finish $1.8 down at $119.8 (giving a daily TCE earning of $142,229). BLPG3 Houston-Chiba had more directional movement losing $12 overall to finish at $213 and a daily TCE earning of $126,126. Brokers have been expressing their exasperation trying to follow the market, with few fixtures actually confirmed but massive volatility and differing opinions on the market LPG rates look set to continue to surprise.
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Source : Baltic exchange
