LNG Freight Diverges as Atlantic Slips, LPG Market Holds Steady

By
Mfame Editor
-
15

  • Time Charter LNG Rates Slip on Softer Sentiment.
  • LPG Market Stable with Mild Gains on Key Routes.
  • Ras Tanura–Chiba LPG Rates Inch Up, Earnings Improve.

This week, LNG freight rates in the Pacific experienced a bit of a boost. On the BLNG1 route from Australia to Japan, 174k cbm vessels saw an increase of $500, bringing their daily rate to $39,600. Meanwhile, 160k cbm units climbed by $1,800 to reach $24,600 per day. The uptick was driven by stronger demand and fewer available vessels, reports Baltic Exchange.

Atlantic Routes Face Sharp Declines

On the flip side, the Atlantic basin faced some steep declines in rates.

For the BLNG2 route from the US Gulf to the Continent, 174k cbm vessels dropped by $6,200 to $32,300 per day, while 160k cbm units fell by $2,200 to $20,200 per day. In the BLNG3 route from the US Gulf to Japan, 174k cbm units saw a decline of $8,800, settling at $41,200 per day, and 160k cbm ships lost $4,000, ending up at $28,000 per day. The weak charter demand in the West dampened the overall sentiment.

Time Charter Market Softens

The short-term time charter market also showed signs of weakness:

  1. For a 6-month term, rates dipped by $1,000 to $55,500 per day.
  2. For a 1-year term, there was a similar drop of $1,000, bringing it down to $50,100 per day.
  3. The 3-year term remained steady at $61,900 per day.

Rates Hold Steady Across Major Routes

The LPG freight market has shown a steady hand this week, with movements staying within a narrow range. The tonnage list remains balanced, and without any new catalysts, the overall sentiment has stayed neutral.

Route Updates:

  1. BLPG1 Ras Tanura–Chiba: Rates increased by $0.50 to $79.33/mt, with TCE earnings rising by $427 to $64,883/day.
  2. BLPG2 Houston–Flushing: Rates dipped by $0.25 to $72.50/mt, while TCE earnings fell by $482 to $77,323/day.
  3. BLPG3 Houston–Chiba: Rates climbed by $0.67 to $130.25/mt, and TCE earnings saw an improvement of $388 to $58,348/day.

Looking Ahead to Late July

With the market remaining relatively stable and not much potential for a surge, all eyes are now on the developments in US and Middle East exports as we head into the second half of July. These factors could play a significant role in shaping the future direction of rates.

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Source: Baltic Exchange