LNG and LPG Freight Market Update: Continued Downward Pressure

By
Mfame Editor
-
10

  • LNG spot and period rates slid further, with sharp declines on US Gulf routes due to oversupply and weak demand.
  • LPG freight markets weakened significantly, led by steep drops on the Ras Tanura–Chiba and Houston–Chiba routes.
  • Market sentiment across both LNG and LPG remains under pressure, with vessel oversupply limiting recovery prospects.

LNG Market Trends

LNG spot rates continued to retreat in both the Pacific and Atlantic basins. On the Australia–Japan BLNG1 route, 174,000 cbm carriers slipped by $1,100 to $32,200 per day, while 160,000 cbm units eased by $600 to $19,000 per day.

In the Atlantic, declines were more pronounced. On the US Gulf–Continent BLNG2 route, 174,000 cbm ships dropped $6,300 to $28,200 per day, and 160,000 cbm vessels fell $3,700 to $16,500 per day. The US Gulf–Japan BLNG3 route also lost ground, with 174,000 cbm tonnage down $6,800 to $36,000 per day and 160,000 cbm units retreating $4,400 to $19,700 per day.

Period charter activity reflected the same bearish tone. Six-month time charter rates slid by just over $4,000 to $38,300 per day, while one-year rates fell nearly $2,500 to $41,500 per day. Even the three-year rate edged lower by around $1,000 to $55,000 per day, underscoring the broader decline in market confidence.

LPG Market Developments

The LPG market also softened, particularly in the Middle East and US Gulf routes. On the Ras Tanura–Chiba BLPG1 route, rates saw steep declines after reported fixtures, with the index dropping $9.16 to $74.667 per metric tonne. This translated into TCE earnings falling by $10,173 to $60,995 per day, as strong vessel supply overshadowed regional activity.

The Houston–Flushing BLPG2 route eased by $5.00 to $76.5 per metric tonne, reducing TCE returns by $7,762 to $84,835 per day. Meanwhile, the Houston–Chiba BLPG3 route mirrored the downward momentum in Asia, with the index sliding $9.5 to $139 per metric tonne and TCE earnings falling $7,515 to $66,642 per day.

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Source: Baltic Exchange