The LNG market showed signs of improvement this week. Increased loading activities have absorbed part of the available capacity in two basins. However, competition for cargoes remains high, and charterers still have strong negotiating power, which has led to a limitation on spot rate movements.
Rates on Key Routes
On the BLNG1 route from Australia to Japan, rates increased by $4,800 last week, reaching $32,800 per day. The Pacific market has gradually strengthened, and with a slight decrease in vessel availability and the emergence of several needs in late November and early December, conditions have improved.
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On the BLNG2 route from the U.S. Gulf to the continent, rates increased by $4,000, reaching $25,400 per day. Increased loading activities have helped absorb some of the available capacity in the Atlantic, although ongoing competition among owners has limited the recovery of rates.
Additionally, on the BLNG3 route from the U.S. Gulf to Japan, rates increased by $10,300 last week, reaching $58,900 per day. Eastern cargoes still enjoy a premium, although economic constraints for arbitrage limit further increases.
LPG Shipping Market and Its Rates
The LPG market calmed down this week as arbitrage became more limited and the position list became slightly longer. With an increase in vessel supply, charterers have regained some of their negotiating power, although vessel supply has remained generally balanced and sentiment in the market remains strong.
On the BLPG1 route from Ras Tanura to Chiba, rates reached $252.40 per ton, and TCE earnings closed at $242,380 per day. On the BLPG2 route from Houston to Flushing, rates decreased by $11.33 last week, reaching $171.67 per ton. TCE earnings also fell to $197,244 per day.
On the BLPG3 route from Houston to Chiba, rates decreased to $29.14, reaching $305.71 per ton, while TCE earnings dropped to $181,218 per day. This route experienced a larger correction due to declining Eastern economies, and charterers regained some of their negotiating power.
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