- LNG market showed mixed trends, with increases on some routes (e.g., Gladstone–Tokyo) and declines on others (e.g., Sabine–Tokyo).
- Term market rates for LNG dropped, with six-month, one-year, and three-year rates all declining.
- LPG market faced downward pressure, particularly on major routes due to vessel oversupply.
- Further declines in LPG rates are expected in the coming weeks as market pressure continues.
Last week, the LNG and LPG markets experienced mixed trends, with fluctuations in vessel rates across various routes and continued downward pressure in the LPG sector due to an oversupply of vessels. While certain LNG routes saw rate increases, others faced declines, and the term market also reflected downward movements. Similarly, the LPG market showed signs of weakening with falling rates and earnings on key routes. These developments suggest that both markets may face continued challenges in the coming weeks unless sentiment improves, according to Baltic Exchange.
LNG Market Overview
Last week, in the LNG market, the BLNG1 Gladstone–Tokyo route saw a positive shift with 174k cbm vessels’ rates increasing by $600 to $11,000/day, while 160k cbm vessels experienced a decline of $400, closing at $5,200/day. In the Atlantic, on the BLNG2 Sabine–UK Continent route, 174k cbm vessels saw an $800 increase, closing at $4,800/day, while 160k cbm vessels also experienced a positive movement, rising by $400 to $1,100/day. However, on the BLNG3 Sabine–Tokyo route, 174k cbm vessels saw a $600 drop, settling at $8,600/day, while 160k cbm vessels increased by $200, closing at $2,400/day.
The term market showed additional downward movements, with six-month rates dropping by $650 to $15,350, one-year rates falling by $2,350 to $23,400, and three-year rates showing a slight decrease of $50, closing at $45,950. These rate declines may persist if the sentiment in the spot market doesn’t improve.
LPG Market Overview
The LPG market continued to face downward pressure across all major routes due to an oversupply of vessels, though some resistance was noted depending on the laycan. On the BLPG1 Ras Tanura to Chiba route, rates fell by $1.94 to $45.06, with TCE earnings decreasing by $2,068 to $25,343. Similarly, in the Atlantic, the BLPG2 Houston–Flushing route saw a drop of $0.50, closing at $47.25, and TCE earnings fell by $1,379 to $40,511. The BLPG3 Houston–Chiba route experienced a slight decrease of $0.08, closing at $90.75, with TCE earnings slipping by $301 to $26,086.
These declines suggest ongoing market pressure, and further downward movement is expected if current trends persist in the coming weeks.
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Source: Baltic Exchange
