LNG

It has been another positive week on rates for LNG with the index rising on all three routes. Despite some activities in fixing out in the Pacific, the rise is more in line with market expectations for October/November laycans and the potential for winter spikes in spot rates rather than physical drivers. BLNG1g Aus-Japan rose by $22,308 to close at $144,045/day for a round voyage. There are still concerns that industrial action in Australia will have an effect, but it seems more to be on the product side than the freight and the overall impact is yet to be realised. Sentiment and brokers are showing expectant signs of life and hope that the winter brings with it again a rise in rates, and some liquidity.

For BLNG2g US-Cont, the rates rose $26,482/day for a round voyage trip bringing the index to $142,427, while BLNG3g still very much hampered by long and costly (one reported owner, potentially either LNG or LPG, shelled out $2,400,000 at auction to secure transit) delays in the Panama saw a decent jump of $24,434/day to bring the round voyage rate up to $178,637. US LNG exports rose in the week ending 30 August compared to the week before. An increase of around three further stems lifted supports the rise of the index and suggests that terminals and charterers are beginning to ramp up movements.

 

LPG

A stable start to the week was turned on its head after one charterer went out for a ship that opened the gates for others sitting on stems to rush out to secure any available tonnage. This pushed rates higher by $22.857 on the week with the rise seen pretty much in the last day alone. Rates for Ras Tanura-Chiba closed at $118.143 giving a daily TCE return of $104,137 – this is the highest level seen since end of June where rates were only $1 higher, suggesting there is more to come.

The US market was not quite as meteoric, however positive gains were seen on both routes. BLPG2 Houston-Flushing gained $5 to close at $103.8 with a daily TCE earning of $118,831. This is the highest level seen on the index this year, beating out the previous high of end June by just under $1. The BLPG3 Houston-Chiba was busy with fixing pushing rates up over $12.285 to close at $182.571 and a daily TCE earning of $102,244. Overall, a productive week for brokers and owners alike in a market where rates rose, and enquiries were thin and tentative due to short supply of ships and continued delays in Panama means some are ready to pay higher freight.