- The LNG market sees strong rate increases, particularly in the Atlantic basin, with both 160k cbm and 174k cbm vessels experiencing significant gains.
- LNG term market shows mixed movements, with short-term rates rising slightly while one-year rates decline.
- The LPG market remains steady, with moderate increases in the Atlantic but slight declines in the Pacific.
LNG Market Sees Strong Gains, Driven by Tight Tonnage
The LNG market saw significant gains this week, with rates increasing across key routes, particularly in the Atlantic basin, according to Baltic Exchange. The surge was largely driven by tightening vessel availability, leading to notable earnings growth for both 160k cbm and 174k cbm vessels.
On the BLNG1 Gladstone–Tokyo route, 174k cbm vessels recorded a $4,400 increase, reaching $15,300 per day, reflecting positive momentum in the Pacific. Similarly, 160k cbm vessels rose by $3,200 to $8,600 per day, signaling a recovery in smaller tonnage.
In the Atlantic, the BLNG2 Sabine–UK Continent route saw 174k cbm vessels surge by $10,800, closing at $19,400 per day, reflecting stronger demand. 160k cbm vessels also posted a sharp increase of $8,900, reaching $10,400 per day, reinforcing an upward trajectory.
The BLNG3 Sabine–Tokyo route saw even stronger gains, with 174k cbm vessels climbing $12,600 to $24,600 per day, while 160k cbm vessels rose $10,800 to $14,000 per day, highlighting robust demand across vessel sizes.
The term market adjusted more gradually. Six-month rates edged up by $800 to $16,000, while one-year rates declined by $825 to $22,425. Three-year rates increased by $850, reaching $46,750. The outlook remains positive, especially in the Atlantic, though sustained momentum will depend on vessel availability and broader market conditions.
LPG Market Holds Steady Amid Mixed Regional Trends
The LPG market remained steady this week, with regional variations in rate movements, likely influenced by IE week activity.
On the BLPG1 Ras Tanura–Chiba route, rates fell by $1.58, settling at $44.50, while TCE earnings declined by $308 to $26,088, indicating renewed pressure due to vessel availability.
In the Atlantic, the BLPG2 Houston–Flushing route saw a $0.44 increase, closing at $47.75. TCE earnings rose by $2,372 to $42,813, signaling improving earnings potential despite stable freight rates.
Meanwhile, the BLPG3 Houston–Chiba route remained unchanged at $91.33, with no rate movement from last week. However, TCE earnings improved by $1,212 to $27,771, reflecting stronger returns despite steady freight levels.
Outlook: The LNG market continues to gain momentum, particularly in the Atlantic, while the LPG sector remains stable with moderate movements. Future trends will be shaped by vessel availability and global demand shifts.
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Source: Baltic Exchange
