- Atlantic Basin LNG Rates Reach Near Historic Lows Amid Sluggish Market Activity.
- Period LNG Charters Shift Towards Index-Linked Rates as Market Hesitation Continues.
- LPG Market Sees Pre-Diwali Stability in East, While Atlantic Basin Rates Decline.
In Week 44 A pullback in the markets based on low inquiries and, more importantly, oversized quantities and prudent charterers continued to weigh upon gas and both East of Suez and Atlantic Basins alike. Period Reflected rates that were indexed. East of Suez has made pre-Diwali bookings for India that were very stable, but tonnage pressure and relets left negative marks on the Atlantic. This report covers the week’s key rate movements and market conditions across LNG and LPG sectors, reports Baltic Exchange.
LNG Market Overview
The Market in the East continued feeling the pressure, with limited inquiries, loads available tonnage, and charterer caution pushing the rates much lower, resulting in overall low market sentiment among both owners and brokers. Rates on the Australia-Japan route (BLNG1) plummeted. The 174,000 cbm 2-Stroke vessels lost $6,599 to close at $35,214, and the 160,000 cbm TFDE vessels lost a bit less, at $404 to close at $24,509.
Atlantic Basin Routes
On the Atlantic Basin, the Houston-Continent route (BLNG2) came in near historic lows. The rate for 160,000 cbm TFDE vessels was published at $11,900 after the drop of $1,814 from the previous week. More modern 174,000 cbm 2-Stroke vessels fell steeper, down by $3,008 to close at $17,893. The Houston-Japan route (BLNG3) had minimal fixtures, adding further pressure on the rates. The 160,000 cbm TFDE index declined$2,741 to close at $23,036 while the 174,000 cbm 2-Stroke fell $4,660 to $32,924.
Period Market Activity
The period market was quiet since charterers had not agreed to fixed rates and it remained a more indexed-linked charter. These were witnessed in the Baltic assessment, as all period terms closed down; the 6-month period closed at $39,350, some $14,000 cheaper, and the 1-year term dropped to $50,000 and the 3-year term closed at $68,400.
LPG Market Overview
Indian cargo in LPG exploded into action in anticipation of the approaching Diwali festival that levelled up the prices. In the BLPG1 from Ras Tanura to Chiba, rates have moderately increased since the published rate hiked $1.222 to $53.889, equating to a daily TCE earning of $34,338.
Atlantic Basin Routes
Across the Atlantic, market pressure mounted as more and more tonnage became available and several relets showed up. This sent the rate lower. On the Houston-Chiba route (BLPG3), rates plummeted to$7.166 as the final rate set was $99.167. With a TCE earning equivalent of $35,196 per day, it brought Houston-Flushing (BLPG2) more calm days, with a plunge in rates by $3.5 as it settled for $56, thus setting its TCE earning equivalent to $54,301 per day.
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Source: Baltic Exchange
