The LNG shipping market faced declining rates this week, despite increased demand for spot, multi-month, and long-term cargoes. While activities have increased compared to recent weeks, the availability of vessels remains greater than the demand for cargoes, keeping pressure on shipping rates in both basins.
Rate Declines on Various Routes
On the BLNG1 route from Australia to Japan, rates fell by $2,300 from last week to $34,600 per day. The Pacific market remained relatively balanced, but additional loading activities were insufficient to offset the number of available vessels.
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The BLNG2 route from the Gulf of America to the continent saw a decrease of $4,900 to $21,200 per day. Despite signs of increasing requests, charterers maintained an advantage as the list of Atlantic vessels continued to exceed the number of cargoes in operation.
Additionally, the BLNG3 route from the Gulf of America to Japan dropped by $4,200 from last week to $52,100 per day. This decline was due to similar softened sentiment in the BLNG2 market.
Weakened Sentiment in the Charter Market
In the time charter market, sentiment weakened across all periods. The six-month rate fell by $1,600 to $46,300 per day, while the one-year rate dropped by $334 to $52,033 per day. Furthermore, the three-year rate also decreased by $350 to $69,950 per day.
In contrast, the LPG market strengthened this week due to a relatively limited list of vessels and several outstanding cargoes supporting shipping rates. Additionally, the expansion of arbitrage has contributed to stronger sentiment.
On the BLPG1 route from Ras Tanura to Chiba, rates reached $265.00 per ton, with a TCE equivalent to $258,182 per day. The BLPG2 route from Houston to Flushing saw an increase of $18 over the week to $190.83 per ton, while TCE rose by $25,114 to $227,905 per day.
Rates were bolstered by the limited position list and outstanding cargoes. Similarly, the BLPG3 route from Houston to Chiba increased by $22 to $344.71 per ton, while TCE rose by $15,331 to $214,030 per day. This route consistently increased over the week due to improved economic conditions in the East and limited vessel availability.
