LNG

The exodus of many LNG market participants to Singapore for Gastech 2023 has not completely hampered gains for the spot LNG market. There have been fewer fixtures recorded but enquiries for October loadings are still gaining momentum. Industrial action has been confirmed by the Offshore Alliance for Chevrons Gorgon and Wheatstone downstream facilities and is expected to last around three weeks. What impact this will have on freight remains to be seen, but with winter around the corner a butterfly effect could see freight being affected in either tonnage availability or with floating storage coming into play with the anticipation of higher spot rates the expected result.

The index itself this week saw positive rises with freight moving up significantly once again. BLNG1g Aus-Japan gained $25,813 on the week, closing at $169,858, which is the highest rate of the year so far. BLNG2g US-Cont faired a little worse but still was up $16,008 to finish at $158,435, while BLNG3g Houston-Japan finished at $197,567 (a rise of $18,930- but still shy of the mentally reaffirming $200,000/day). With many people travelling, strong gains on all three routes gave positive nods to how the winter market should be going. Rates are expected to continue to rise as laycans approach November and brokers are cautiously optimistic that rates and liquidity will align.

 

LPG

A tumultuous week for the LPG market with big movements on all three routes. Rates have risen to almost the previous highs seen back in November 2022, which broke the previous highs from several years previous. Reports of one cargo being fixed at $155 for AG has put even more pressure on charterers trying to source ships. BLPG1 Ras Tanura-Chiba rose $26 this week to close at $146.429, giving a TCE daily equivalent of $135,178 (a rise of $28,423/day). With Adnoc dates still yet to be released brokers in the market are at fever pitch with hopes of more to come.

BLPG2 and BLPG3 Houston-Flushing and Houston-Chiba both saw rises, with BLPG2 closing out at $118.6 while BLPG3 rose $24.286 to finish at $220 (a daily TCE earning of $131,300 on a round trip). Delays in the Panama are still very much at the forefront of people’s thoughts and further talk of vast payments for transits play quite a part in the recent uptick. Despite continued cargo interest limited vessel supply could stabilise rates as charterers reassess options.