- Long-haul LNG rates ease as demand fails to support levels.
- Period LNG market declines across all terms.
- The Middle East LPG route falls on excess tonnage.
The LNG market experienced a bit of a downturn this week, with rates slipping across both spot and period segments as demand remained limited while vessel availability stayed steady. The lack of strong new inquiries kept the mood somewhat gloomy, leading to declines in all major routes, reports Baltic Exchange.
Pacific Routes
On the BLNG1 Australia–Japan route, 174k cbm vessels saw a decrease of $1,000, bringing their rates down to $33,300/day, while 160k cbm tonnage fell by $1,100 to $19,600/day. Activity in the Pacific was quite subdued, with not much happening to soak up the available capacity in the basin.
Atlantic Routes
The BLNG2 US Gulf–Continent route took a bigger hit, with 174k cbm earnings dropping by $2,100 to $34,600/day and 160k vessels losing $1,600 to settle at $20,200/day. This reflects the weaker demand in the Atlantic and a rise in prompt availability.
Longer-Haul Routes
On the BLNG3 US Gulf–Japan route, 174k cbm ships eased down by $1,300 to $42,800/day, while 160k cbm units dipped $1,800 to reach $24,100/day, as longer-haul demand failed to provide any significant support.
Period Market Trends
The period market also took a step back. The six-month TC rate fell by $1,800 to $42,350/day, the one-year rate slipped $1,825 to $43,925/day, and the three-year term dropped $750 to $56,050/day, reflecting a general sense of softness across the board.
LPG Market: Quiet Week with Softer Sentiment
The LPG market had a rather quiet week, with sentiment softening as the arbitrage narrowed and charterers showed little interest in pushing rates higher. The availability of tonnage added to the pressure, pulling earnings down across all major routes.
Middle East Route
On the BLPG1 Ras Tanura–Chiba route, rates dipped by $3.33 to $83.83/MT, while TCE earnings fell by $4,282 to $70,846/day. Activity in the Middle East remained steady, but the supply of available ships weighed on sentiment.
Atlantic Route
The BLPG2 Houston–Flushing route eased $1.00 to $81.00/MT, with TCE returns down $1,449 to $91,522/day.
Long-Haul Route
The BLPG3 Houston–Chiba route softened $2.58 to $148.42/MT, with TCE earnings slipping $2,559 to $73,771/day, as the narrowing arbitrage reduced long-haul demand and undercut recent momentum.
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Source: Baltic Exchange
