LNG

The rates have crept up this week with activity reported in both basins. In the east, with some enquires reported, rates have risen by $3,612 since last Friday to close at $53,076 for BLNG1 (Gladstone/Japan). This is despite a recent report from the Japanese Ministry of Finance that the overall Japanese LNG imports have fallen by about 19.9% year-on-year in May. Market sentiment has been pushing rates higher, expectations of potential ARB openings has increased chatter suggesting that something can be made of the summer months. As yet though with still few firm enquires and fewer still spot fixtures the overall consensus is muted.

In the West, where a few potential and as yet unverified US-East cargoes are reported the market has reacted as expected and scant details are available of one cargo that got covered late yesterday, however the consensus is that rates are firmer than at the beginning of the week. For BLNG2 (USG/UKC) the rate climbed $9,980 compared to a week ago to $58,925 and for BLNG3 (USG/Japan), the rate has risen $11,182 to $73,294 over the week. Though this is not a massive increase on round voyage earnings the direction points to potentially happier times ahead. The market has seen a slow and laborious rise back to decent earnings but having had a dramatic fall from over $500,000 back in November 2022 till now, rates still have some distance to travel.

 

LPG

There was a slight hangover from the Nor-Shipping week, with many participants nursing heavy heads after a lovely sunny time in Oslo. Rates didn’t react much but as the week wore on, an increasing tightness in ships East of Suez put cargoes working under pressure, some brokers recorded $110+ being bid, although at time of writing the index was yet to catch up while those who were working kept their cards close to their chest. Tonnage remains the name of the game and, although we had a reasonable drop last week, rates have regained footing and expectations are they should hold firm. A BLPG1 run AG-Chiba rose by $4.429 to close at $108 a rise of more than $5,000 per day in TCE earnings pushing us ever closer to $100,000.

Out in the west, while rates rose significantly for Houston-Chiba (more than $6.7 on the week a rise of over 4.5%) and the Arb working in its favour, delays in Panama remain a concern for replenishment of tonnage. Owners and brokers overall are satisfied as earnings on a TCE daily round trip are close to $80,000 per day now on BLPG3, but with BLPG2 remaining quiet – despite rates rising to $90.2 and a daily TCE earning of $102,765, the run remains relatively illiquid and focus is still set on the rising sun.