The LNG transportation market continued to strengthen this week with increased supply activities, reducing existing capacities in two areas. The Atlantic market strengthened after several contracts and a slight decrease in the list of positions. However, there is a need for more cargoes to maintain this trend.
LNG Freight Rates on Various Routes
On the BLNG1 route from Australia to Japan, rates increased week-on-week by $6,500 to reach $44,800 per day. The Pacific market also strengthened as the availability of prompt vessels decreased, although supply and demand remained relatively balanced overall.
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On the BLNG2 route from the U.S. Gulf to the continent, rates increased by $500 to $29,800 per day. Recent supply activities helped the rates, but the adequate availability of vessels continues to hinder further increases. Similarly, on the BLNG3 route from the U.S. Gulf to Japan, rates rose week-on-week by $3,300 to $63,800 per day.
Developments in the Charter Market
In the charter market, rates strengthened across all periods. The six-month rate increased by $1,800 to $42,500 per day, while the one-year rate rose by $2,067 to $53,867 per day. In the three-year period, the rate increased by $100 to $70,600 per day.
The LPG market was relatively quiet this week. The east-to-west arbitrage is still open and supports the economic dynamics of cargoes, while the availability of vessels remains generally balanced against demand.
On the BLPG1 route from Ras Tanura to Chiba, rates reached $257.20 per ton, and TCE earnings closed at $245,402 per day. Additionally, on the BLPG2 route from Houston to Flushing, rates increased by $1.17 to $174.33 per ton, and TCE earnings rose by $1,588 to $200,947 per day. Despite small increases, charterers have maintained negotiating power.
Finally, the BLPG3 route from Houston to Chiba saw rates increase by $3.86 to $313.14 per ton, and TCE returns rose by $767 to $184,820 per day. Rates have remained relatively stable, and participants are looking for new cargo activities to determine direction in the coming weeks.
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