- The LNG market remained mixed, with stable activity and softening time charter rates, while Pacific and transpacific routes showed selective movements.
- In contrast, the LPG market strengthened across all key routes, driven by tightening vessel availability and rising chartering demand, especially in the Atlantic.
- Time charter rates in the LNG sector declined, while LPG rates and TCE earnings surged, highlighting diverging market momentum.
As reported by Baltic Exchange, This week’s LNG market presented a mixed picture as vessel availability remained stable, aligning with a steady cargo flow. Rates showed a combination of slight gains and declines depending on the region and vessel size.
Route-Specific Movements
On the BLNG1 route from Australia to Japan, freight rates for 174,000 cbm vessels dropped by $1,300 to $37,200 per day. However, 160,000 cbm vessels saw an increase of $800 to reach $22,400 per day, as demand in the Pacific remained subdued but still showed selective support for smaller units.
On the BLNG2 route from the US Gulf to the Continent, both 174,000 and 160,000 cbm vessels experienced a modest uptick of $400, reaching $33,200 and $20,500 per day respectively. This was supported by stable trading activity and a balanced tonnage list.
Conversely, the BLNG3 route from the US Gulf to Japan experienced softening, with 174,000 cbm vessels losing $600 to settle at $39,800, and 160,000 cbm vessels down $500 to $24,400, reflecting weak transpacific chartering activity.
Period Market and Time Charter Trends
Sentiment in the time charter segment cooled further, leading to notable declines. The six-month time charter rate dropped by $1,850 to $50,850 per day. One-year rates fell by $1,900 to $47,500, while three-year contracts saw the steepest decline, down $2,850 to $58,250 per day, indicating reduced forward market confidence.
LPG Market Overview
Unlike LNG, the LPG market showed firm momentum this week, buoyed by tightening vessel supply and robust demand—especially in the Atlantic basin. Rates rose significantly across major routes, supported by limited tonnage availability and active chartering discussions.
Rate Increases and Regional Highlights
On the BLPG1 route from Ras Tanura to Chiba, rates increased by $4.00 to reach $84.67 per metric tonne. Corresponding TCE earnings surged by $4,686 to $71,533 per day, driven by continued Middle East loadings and limited vessel availability leading into late August.
The Atlantic market remained particularly active. On the BLPG2 Houston to Flushing route, rates rose by $2.75 to $78.00, with TCE returns climbing $3,867 to $85,361 per day. The BLPG3 Houston to Chiba route also saw strong gains, with rates up $4.58 to $141.08 per metric tonne, and TCE earnings rising by $3,871 to $67,623 per day. These movements reflect the tightening vessel list and sustained demand across the region.
Overall, while the LNG sector faced a cooling period market and mixed spot rate behavior, the LPG market stood out for its firming sentiment and tightening supply dynamics.
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Source: Baltic Exchange
