- Atlantic LNG Leads Gains as Prompt Availability Shrinks.
- Middle East Tensions Push LPG Rates to Multi-Week Highs.
- US Gulf–Japan LNG Route Jumps Nearly $19,000 in a Week.
The LNG market experienced a significant boost this week as the supply of vessels tightened across key routes in anticipation of early July loadings. Both the Atlantic and Pacific basins showed strong activity, with the Atlantic leading the charge, reports Baltic Exchange.
Pacific Rates on the Rise
For the Australia–Japan route, rates for 174k cbm vessels climbed to $33,000 per day, while smaller 160k cbm ships followed suit, reaching $21,000 per day. The limited availability of tonnage has been a key factor in maintaining upward pressure on these rates.
Atlantic Market Momentum
The US Gulf–Continent route saw impressive increases, with rates hitting $49,300 per day for 174k units and $26,900 for 160k vessels. The US Gulf–Japan route experienced the most significant jump, with rates soaring to $60,500 and $36,400, respectively. Demand for long-haul transport remained robust.
Time Charter Rates on the Rise
Rates for six-month and one-year time charters increased to $38,750 and $40,500 per day, respectively. Meanwhile, three-year rates remained stable at $56,000, indicating a sense of long-term stability in the market.
LPG Freight Rates Surge
The LPG market also saw a rally this week, driven by geopolitical tensions in the Middle East, which heightened sentiment and reduced vessel availability.
Ras Tanura–Chiba Takes the Lead
On the Ras Tanura–Chiba route, rates jumped to $85.83 per metric tonne, with daily earnings spiking to $71,244, showcasing the impact of regional risks on freight costs.
Houston–Flushing rates rose to $70.25, while Houston–Chiba climbed to $125.67 per metric tonne. Strong trans-Pacific demand continued to support solid TCE earnings.
Overall Market Sentiment Remains Strong
In summary, the LPG market wrapped up the week on a high note, with uncertainty and limited tonnage pushing rates higher as we head into July.
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Source: Baltic Exchange
