- Atlantic LNG routes see sharp rate declines.
- Time charter rates climb amid strong charterer interest.
- LPG rebounds with strong gains on the Middle East to Japan route.
The LNG freight market had a mixed performance this week. Softening rates were witnessed in the Atlantic basin, whereas the Pacific market remained firm with some small improvements. On the BLNG1 Australia to Japan route, 174k cbm ships were unchanged at $22,800 daily, and 160k cbm ships improved somewhat by $200 to $14,000 daily. Such firm or better spot rates in the Pacific were in contrast to significant rate pressure in the Atlantic, reports Baltic Exchange.
Atlantic LNG Routes Experience Falling Rates
The Atlantic market experienced deep rate cuts. The BLNG2 US Gulf to Continent route declined sharply by $2,700 for 174k cbm-sized vessels, reducing earnings to $38,900 per day. The same happened to 160k cbm-sized vessels that fell by $800 to close the week at $18,800 per day. On the BLNG3 US Gulf to Japan route, 174k cbm ships lost $1,700 to settle at $45,700 per day, while 160k cbm ships fell $500 to close at $23,800 per day.
Time Charter Market Remains Strong
With fluctuations in spot market demand notwithstanding, the time charter market for LNG remained resilient for all tenure sizes. Six-month charters added $1,350 to hit $32,950 a day. Year-long charters were up $1,525, trading at $36,325 per day. Three-year charters, too, picked up steam, increasing by $850 to conclude at $54,800 a day, a testament to active participation by charterers wishing to capture capacity in front of an envisioned more strained environment for the rest of the year.
LPG Market Rebounds Led by Middle East Strength
The LPG shipping market recovered during the week, with a rise in the Ras Tanura-Chiba route being the most pronounced. Strong fixing demand and higher activity levels after a subdued April lifted the atmosphere. The BLPG1 route Middle East Gulf to Japan grew by $6.08 at $54.33, TCE earnings on the route jumping by $6,142 at $38,245 per day. The strength seems to be spurred by healthier East Asian schedules and increased prompt demand.
US Gulf LPG Routes Steady with Limited Potential
Conversely, US Gulf LPG routes were relatively stagnant. BLPG2 US Gulf to Continent had a minimal rate hike of $0.25, settling at $53.00, while TCE earnings fell by $381 to settle at $52,141 per day. BLPG3 US Gulf to Japan was flat at $102.17, as TCE earnings fell by $674 to $37,570 per day. Even as rates remained stable, the market displayed minimal upside momentum from a lack of new cargo demand or repositioning activity.
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Source: Baltic Exchange
