Gas Freight Market: Pacific LNG Stagnation and Atlantic LPG Trends

By
Mfame Editor
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71

LNG Market Overview

The LNG spot market saw minimal movement this week, with rates largely stagnant amid limited activity, especially in the Pacific. Persistent lengthy tonnage lists and scarce cargo opportunities continued to pressure rates in the region.

Pacific Region:

  • BLNG Australia-Japan (174k cbm 2-stroke) rates edged up marginally by $200 to $26,000.
  • 160k cbm TFDE vessels remained unchanged at $16,000.
  • Activity in the Pacific remains muted, and significant rate increases are unlikely in the near term.

U.S. Market:

  • Increased activity this week, driven by vessels chartered for late-December cargoes likely headed to Europe.
  • BLNG2 Houston-Isle of Grain (174k cbm 2-stroke) rose by $3,700 to $21,100.
  • 160k cbm TFDE index increased to $13,800.
  • BLNG3 Houston-Japan saw muted activity, but rates rose slightly due to pressure from BLNG2, with the 174k cbm 2-stroke index gaining $1,000 to $28,200 and the 160k cbm TFDE index climbing by $2,500 to $17,800.

Period Market:
The period market remains largely inactive, with limited discussions shifting toward index-linked charters. Owners are hesitant to commit to long-term charters given the low rates.

  • The Baltic 6-month period index stands at $27,350.
  • The 1-year term dropped to $37,550.
  • The 3-year period fell by $2,650 to $55,350.

Overall, the LNG market remains subdued, with slight improvements in Atlantic activity offset by persistent challenges in the Pacific. Further rate movements will depend on U.S.-Europe trade dynamics and Pacific cargo developments.

LPG Market Overview

The LPG market remained subdued this week. The Middle East Gulf (MEG) BLPG1 Ras Tanura-Chiba Baltic route saw limited activity, with only one reported fixture. Rates showed minimal change overall.

Middle East Gulf:

  • BLPG1 rates fell slightly by $0.16, with the Baltic publishing the route at $50.333.
  • Daily TCE earnings dropped marginally to $31,376, down by $208 for the week.

Atlantic Market:

  • Activity picked up, but a growing tonnage list created bearish sentiment.
  • BLPG3 Houston-Chiba rates dropped by $4.50 to $100.833, with daily TCE earnings at $37,535.
  • BLPG2 Houston-Chiba saw no reported fixtures, and rates declined in tandem with
  • BLPG3, falling by $3 to $55.75, with daily TCE earnings of $54,270.

While the MEG market remains flat, the Atlantic’s growing tonnage and declining rates suggest potential bearish trends in the coming weeks.

 

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Source: Baltic Exchange