- Atlantic LNG Rates Surge, Pacific Sees Modest Gains.
- Charter Demand Boosts LNG Spot Market Ahead of July.
- LPG Market Stable with Minor Fluctuations.
The LNG market experienced a solid uptick across all major trading routes, thanks to a squeeze in vessel availability as we approach early July loadings. While the Pacific Basin saw some modest gains, it was the Atlantic region that took the lead, showing stronger activity and a surge in mid-summer charter demand, reports Baltic Exchange.
Pacific Rates Keep Climbing
In the Pacific, the Australia–Japan BLNG1 route showed steady improvement. Rates for 174,000 cbm vessels increased by $800, bringing them to $20,700 per day, while the 160,000 cbm ships saw a rise of $1,200, settling at $12,400 per day. The limited tonnage in the area helped support this steady, albeit modest, upward trend.
Atlantic Basin Gains Momentum
The Atlantic market, on the other hand, saw sharper increases. On the US Gulf–Continent BLNG2 route, 174,000 cbm vessels jumped by $3,700, reaching $32,800 per day. The smaller 160,000 cbm tonnage also saw a rise, gaining $400 to hit $15,400 per day. This rally is a clear sign of tightening vessel supply and increasing charter interest as we head into the mid-summer season.
Trans-Pacific Rates Follow Suit
On the US Gulf–Japan BLNG3 route, the rates for 174,000 cbm vessels climbed by $3,700, reaching $38,200 per day. At the same time, 160,000 cbm ships enjoyed an $800 bump, bringing their daily rate to $18,500.
Lack of Fresh Drivers Keeps Market Sideways
The LPG market has been pretty stable this past week, with rates fluctuating only slightly. The lack of new drivers and a tight West–East arbitrage have kept prices from rising, but consistent fixture activity has helped avoid any significant drops.
East of Suez Route Slips Slightly
On the Ras Tanura–Chiba BLPG1 route, rates dipped by $1.00, landing at $69.00 per metric tonne. Time charter equivalent (TCE) earnings also fell by $1,745, settling at $53,607 per day. Even with this decline, the market seems to be holding its ground.
West of Suez Posts Minor Gains
The Houston–Flushing BLPG2 route experienced slight gains, with rates increasing by $0.38 to reach $65.25 per metric tonne. TCE earnings rose by $74, bringing them to $68,422 per day. Activity levels stayed steady, although the overall momentum felt a bit sluggish.
The Houston–Chiba BLPG3 route remained unchanged at $120.83 per metric tonne. TCE earnings dipped slightly, down by $642 to $51,262 per day. This stability suggests the market is in a bit of a holding pattern, adjusting to previous rate hikes.
Market Outlook Cautiously Neutral
In general, the LPG market has been rather subdued, with participants taking a wait-and-see approach. With low volatility and no significant changes in the fundamentals, all eyes are now on potential shifts in trade flows or regional demand patterns that could influence the market in the coming weeks.
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Source: Baltic Exchange
