- LNG rates declined further due to weaker transatlantic demand and vessel oversupply.
- LPG rates increased modestly across major routes as vessel availability tightened and market sentiment improved.
Last week’s gas market report by Baltic Exchange covers recent trends in both LNG and LPG shipping rates. The LNG market saw further softening amid cautious sentiment and weaker demand, particularly in the Atlantic basin. Meanwhile, the LPG market experienced modest gains driven by tighter vessel availability and improved fundamentals.
LNG:
The LNG market softened further last week, with small declines across both spot and period markets as sentiment turned cautious. Weaker transatlantic demand and ample vessel supply in the Atlantic basin weighed on rates, while the Pacific remained relatively more stable.
On the BLNG1 Australia–Japan route, 174k cbm vessels held steady at $20,900/day, while 160k cbm units dipped $500 to $11,700/day, reflecting a still-balanced market in the Pacific basin.
In the Atlantic, rate pressure intensified. The BLNG2 US Gulf–Continent route for 174k cbm vessels slumped by $3,200, settling at $29,800/day, while 160k cbm vessels slipped $200 to $14,600/day. Similarly, BLNG3 US Gulf–Japan dropped $3,200 for 174k cbm ships to $36,300/day, and $900 for 160k cbm to $18,100/day. The losses point to diminished cargo activity and increased ballast availability in the Atlantic.
The time charter market was mixed. Six-month TC rates edged down $250 to $38,750/day, while one-year charters gained $1,175, closing at $39,875/day. Three-year rates declined $1,550 to $54,550/day, signalling some hesitation from charterers regarding long-term commitments in a softer market environment.
LPG:
The LPG market saw modest gains last week across all major routes, as vessel availability tightened and sentiment improved following the previous week of subdued trading. While the recovery was not dramatic, firmer fundamentals helped buoy rates and earnings across the board.
On the BLPG1 Ras Tanura–Chiba route, rates edged up $0.50 to $67.83, with corresponding TCE earnings increasing $592 to $52,795/day. The improvement reflects a marginal tightening in Middle East–East Asia supply chains, with charterers stepping into the market for end June positions.
The BLPG2 Houston–Flushing route also firmed, gaining $1.63 to close at $61.38, while TCE earnings climbed $2,324 to $63,675/day. The gains were underpinned by further tightening of ship availability in the Atlantic.
On the long-haul BLPG3 Houston–Chiba route, rates rose $1.92 to settle at $114.42, with TCE earnings up $1,545 at $46,688/day.
Despite the gains, market participants remain watchful—mostly on the West to East arbitrage, which has been shut for some time and could significantly influence forward momentum.
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Source: BalticExchange
