Baltic Exchange summarizes the gas report for the week 47 of this year.
With Freeport confirming the uncertainty from last week, a slight influx of tonnage has opened up the ability for spot fixing – albeit with caveats on timing and delivery. But with such active period markets there is less spot requirements and a slight shift from the higher positioning costs has brought the index down a little. Delays in the Panama Canal continue to cause headaches. And, although rates are still high, they aren’t remaining at the levels first suspected going into the winter markets.
There has been a slight correction in rates this last week. After a few weeks of all-time highs the levels have begun to level out. Activity in the East has also begun to slow, with approximately half the number of fixtures this month as there have been in the previous three. Rates have come off around $7 to finish at $140.857 on Ras Tanura-Chiba. Although this is a drop, sentiment remains bullish. A vessel was fixed with last decade December dates at $152 equivalent BLPG1, but going into India, which has been a driving factor for the rates this week.
In the West, on BLPG2 and BLPG3 the continued delays in the Panama Canal are putting pressure on charterers. Fixing windows have moved out to the New Year already with December mostly covered. Rates remain strong with minimal drops from the US. BLPG2 and BLPG3 closing at $112.6 and $201.429 respectively is keeping everyone on their toes.
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Source: Baltic Exchange