- BLNG3 Sabine–Tokyo Records Sharpest Decline.
- Term Market Sees Rate Decreases Across All Durations.
- BLPG1 Ras Tanura–Chiba Sees Rate and TCE Growth.
The LNG market faced downward pressure due to an oversupply of vessels and limited cargo availability, driving rates lower across key routes. In contrast, the LPG market showed minor improvements, with some routes experiencing slight rate increases and higher TCE earnings. While LNG rates remained bearish, LPG demand exhibited resilience despite market challenges, reports Baltic Exchange.
LNG Market Overview
The market for LNG declined further as the supply of tonnage gained pace over demand and fell further in key routes. Furthermore, the few available cargoes added to pressure prices lower.
BLNG1 Gladstone–Tokyo Route
The reduction in rates on the Gladstone–Tokyo route for both 160k cbm TFDE and 174k cbm 2-Stroke vessels was recorded. The 160k cbm TFDE index decreased by $432, at $4,199 whereas the 174k cbm 2-Stroke index reduced by $803 at $11,790.
BLNG2 Sabine–Isle of Grain Route
The BLNG2 route had mixed trending, the 160k cbm TFDE index rising by $2,895 to $1,100 showing a small correction in the market since earlier negative rates applied. On the other hand, the 174k cbm 2-Stroke index dived by $883, ending at $3,558.
BLNG3 Sabine–Tokyo Route
The Sabine–Tokyo route had the biggest decline during the week. The 174k cbm 2-Stroke index dipped by $2,211 at $7,370, with the 160k cbm TFDE index decreasing by $391 to end at $2,634.
Term Market Performance
The term market also declined; however, its decline was pronounced for shorter periods. Six-month rates declined to $22,250 from a previous decline of $2,950. A year rate was down by $1,375 to $29,350 while three years is down by just $50 from $48,200. Such declines indicate spot market bearishness is sustaining.
LPG Market Summary
The LPG market improved very slightly with increased pressure on rate and TCE earnings on selected routes.
BLPG1 Ras Tanura-Chiba Route
The rate for Ras Tanura–Chiba increased by $4 and closed at $52.33. The TCE earnings also increased by $4,201 to $32,217. This rise means a moderate growth in the demand for vessels in this route.
BLPG2 Houston–Flushing Route
Houston–Flushing Route The Houston–Flushing route saw a marginal decrease due to poor arbitrage from the prior week and weather-related issues such as fog, which temporarily shut Houston. Rates fell by $0.75 to $52.50 while TCE earnings dropped by $1,029 to $48,190 for the day.
BLPG3 Houston–Chiba Route
Houston–Chiba Route saw a marginal drop as well. The rate fell by $0.08 to $97.33. TCE earnings also dipped a little bit to close at $33,275.
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Source: Baltic Exchange
