LNG, LPG Freight Rates Retreat on Weaker Demand

By
Mfame Editor
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36

  • LNG spot freight rates eased across most Asia–Pacific and Atlantic trades, with transpacific lanes particularly pressured by slack demand and ample tonnage.
  • In the period market, six-month charters firmed into the winter peak, but longer-term one-year and three-year rates moderated.
  • LPG freight rates reversed recent gains as supply loosened, the U.S. arbitrage window closed, and tariff‐driven disruptions subsided.

LNG Market Overview

This week’s LNG shipping landscape was characterized by weaker demand on trans-Pacific routes and only sporadic support in the Atlantic. As fresh cargo inquiries slowed and vessel availability rose, earnings retreated on most key trades.

Spot Rate Movements

  • Australia–Japan (BLNG1): Rates for 174,000 cbm carriers dropped by $1,400 to finish at $20,400/day, while 160,000 cbm vessels slid $1,200 to $12,400/day.
  • U.S. Gulf–Continent (BLNG2): The 174,000 cbm segment inched up $100 to $32,000/day, yet the 160,000 cbm class gave back $1,400, ending at $14,800/day.
  • U.S. Gulf–Japan (BLNG3): Longer-haul earnings fell $1,200 to $37,900/day for 174,000 cbm ships and declined $1,900 to $19,000/day for 160,000 cbm vessels, reflecting cautious fixture activity.

Period Charter Trends

  • Six-Month TCs: Pushed higher by $3,550 into the winter peak, reaching $39,000/day.
  • One-Year TCs: Slipped $475 to $38,700/day as forward sentiment cooled.
  • Three-Year TCs: Fell $450 to $56,100/day amid reassessment of longer-term fundamentals.

LPG Market Dynamics

Following a brief surge driven by tariff‐related tightness, LPG freight rates corrected downward across all major corridors, as additional vessel supply emerged and the U.S. arbitrage faded.

Route-Specific Performance

  • Ras Tanura–Chiba (BLPG1): Charter rates eased by $1.67 to $68.33/mt, with daily TCE earnings down $1,581 to $53,138/day, pressured by greater tonnage availability in Asia.
  • Houston–Flushing (BLPG2): Rates fell $2.25 to $60.00/mt, dragging TCE returns down $3,163 to $61,589/day.
  • Houston–Chiba (BLPG3): Saw the steepest correction, dropping $4.00 to $113.33/mt and cutting TCE earnings by $2,878 to $45,614/day, as the arbitrage window narrowed.

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Source: Baltic Exchange