The LNG (Liquefied Natural Gas) transportation market saw significant strengthening last week, as supply activities in the East Suez led to limited availability of vessels. Spot rates in the Atlantic have also gradually improved, although overall cargo demand remains relatively weak and the list of vessels has created limitations for further price increases.
New Rates on Key Routes
On the BLNG1 route from Australia to Japan, rates increased by $9,600 from last week to reach $54,600 per day. This increase was due to more supply activities and limited vessel availability, which supported rates throughout the week.
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Similarly, on the BLNG2 route from the U.S. Gulf to the continent, rates increased by $5,700 to reach $35,300 per day. These rates gradually strengthened, although weak demand and continued vessel availability prevented further rate increases.
On the BLNG3 route from the U.S. Gulf to Japan, rates also increased by $2,200 to reach $64,600 per day. This route continues to be supported due to limited vessel availability, although the wide gap between offers and requests has restricted liquidity.
Time Charter and LPG Market
In the time charter market, rates changed mixed. The six-month rate increased by $1,700 to reach $44,200 per day, while the one-year rate rose by $200 to $54,067 per day. On the other hand, the three-year rate decreased by $100 to $70,500 per day.
The LPG market also strengthened this week, with a healthy level of supply activities in the West supporting rates. As more cargoes are being worked on and vessel availability is generally balanced with demand, market sentiment remains positive.
On the BLPG1 route from Ras Tanura to Chiba, rates reached $261.40 per ton, while net TCE earnings closed at $254,022 per day.
On the BLPG2 route from Houston to Flushing, rates increased by $5.33 to $180.00 per ton, and TCE earnings rose by $9,610 to $210,924 per day.
Similarly, on the BLPG3 route from Houston to Chiba, rates increased by $8.29 to $322.29 per ton, while TCE yield increased by $10,491 to $196,055 per day. This route strengthened throughout the week as cargo activity remained healthy and the position list was relatively balanced.
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