LNG Market Report
Australia-Japan Route (BLNG1g)
Experienced a notable drop of $29,023, closing at $113,975. This price level hasn’t been seen since mid-August, and before that, in January. Despite considerable activity in the East, rates fell. Ships were fixed from Australia at varying rates: one at around $140,000/day and another closer to $100,000. Despite the market hit, there’s ongoing discussion indicating positive signs, encouraging most brokers, reports Baltic Exchange.
US Export Market
Facing challenges due to ongoing issues with the Panama Canal, making Asian LNG prices more appealing than those in the Atlantic. Market activity slowed down with many brokers and players engaged in festive celebrations post the Athens conference. As a result, the Houston-CONT (BLNG2g) dropped by $18,921 to $141,328, and Houston-Japan (BLNG3g) fell to $145,141. The LNG period assessment also declined: $85,000 for six months, $96,900 for one year, and $104,200 for three-year-term deals.
LPG Market Report
The closure of the Panama Canal has forced ships to predominantly use the Suez route. This has notably affected rates, with BLPG3 Houston-Chiba dropping below $200 for the first time since October, closing at $198.286. Similarly, BLPG2 Houston-Flushing suffered a drop,
Ras Tanura-Chiba Route (BLPG1)
Witnessed a quiet week with a $23 drop, closing at $125.286. Lack of activity and failed subject cargoes internally led to significantly weakened rates compared to recent weeks. Despite nearing the end of 2023, there’s lingering optimism among brokers for potential activity before the New Year.
Impact of Panama Canal Closure Closing at $109.8. Both routes experienced a decline in daily TCE earnings, with BLPG3 at $115,935 and BLPG2 at $130,681.
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Source: Baltic Exchange
