LNG Freight Gains in Atlantic as LPG Rates Soften on Weak Demand

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Mfame Editor
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  • LNG market firmed this week, led by sharp gains in the Atlantic basin, with 174k cbm rates on the Sabine–Tokyo route jumping $5,200 to $47,000/day.
  • Pacific LNG rates remained stable, signaling a balanced market as May positions are covered.
  • LPG market softened slightly across all major routes due to weak trading activity and lackluster arbitrage.
  • Houston–Flushing LPG route dipped $0.75 to $53.00, though TCE held flat near $53,000/day.
  • Outlook remains cautious for both sectors heading into May, pending clearer demand and arbitrage signals.

LNG Market: Atlantic Gains Drive Stronger Freight Rates

The LNG freight market posted notable gains this week, especially in the Atlantic, where fresh chartering activity and tightening vessel availability pushed spot rates higher.

  • On the BLNG3 Sabine–Tokyo route, 174k cbm rates surged by $5,200, reaching $47,000/day, while 160k cbm vessels rose by $1,400 to $24,300/day.
  • The BLNG2 US Gulf–Continent route also firmed, with 174k cbm rates climbing $3,300 to $40,400/day, and 160k cbm ships increasing $400 to $19,600/day.

In contrast, the Pacific market remained stable:

  • On the BLNG1 Gladstone–Tokyo route, 174k cbm ships inched up $400 to $22,800/day, while 160k cbm units stayed flat at $13,800/day, reflecting a balanced chartering environment for May positions.

Time charter rates showed modest growth:

  • 6-month term: up $550 to $31,600/day
  • 1-year term: up $400 to $34,800/day
  • 3-year term: up $100 to $53,950/day, suggesting steady mid-term demand despite macro headwinds.

LPG Market: Rates Dip Across All Major Routes

In contrast, the LPG freight market saw a subdued week, with rates easing across the board amid muted activity and poor arbitrage economics.

  • BLPG1 Ras Tanura–Chiba dropped $2.67 to $47.67/ton, bringing TCE down $2,027 to $31,500/day.
  • BLPG2 Houston–Flushing declined $0.75 to $53.00/ton, though TCE stayed flat at $53,009/day.
  • On the BLPG3 Houston–Chiba route, rates edged down $1.17 to $101.50/ton, with TCE up slightly by $75 to $37,758/day.

Outlook: Without a significant pickup in cargo demand or arbitrage improvement, freight rates could remain under pressure heading into May.

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Source: Baltic Exchange