LNG

It is past the midpoint of the year and the LNG market is looking at what is next, with rates firming and the more modern and efficient 2-stroke ships pulling away from TFDE tonnage. Interest from charterers is there and there were several fixtures concluded this week with interest up until the last day of trading. For BLNG1 Aus-Japan on the 174cbm rates climbed, although not much, and finished flat at $50,900 while the 160cbm TFDE ship moved higher closing the delta slightly at $39,654. For BLNG2 Houston-Cont the 174cbm 2-stroke ships moved up by nearly $10,000 to close at $87,300 while the 160cbm TFDE ship languished behind finishing on a publication of $67,700. This delta was repeated on BLNG3 HoustonJapan where the 174cbm finished up at $94,900 while the 160cbm finished $75,511.

This widening of the delta is not unexpected the modern 2-stroke ships remain the first choice, as they allow greatest options for transits to both east and western markets. While BLNG1 remains tighter, there is greater availability of tonnage and keeping the delta tighter.

Period continues to be buoyant with multi-month deals moving up to $109,400 for a sixmonth charter. There is less movement on one-year and three-year constructs where ideas of where the LNG market is headed remains a little unclear. These periods finished at $85,000 and $85,500, respectively.

 

LPG

The MEG BLPG1 Ras Tanura-Chiba route had an up and down week, beginning lower the rates climbed to a high of $71.714 before falling to the close of $68.857 (a total drop of $3.286 for the week). The TCE earnings moved marginally gaining $3,397 to a close of $49,329. The fixing window now is looking out to the last decade of July, although brokers report that there could be a stay of calm while charterers wait for the lists to be replenished. The Western market was quiet, with few fixtures meaning the rates softened across both BLPG2 and BLPG3. Houston-Chiba lost $4.357 to finish at $117.357 with a daily TCE earning equivalent of $47,758, while BLPG2 Houston-Flushing dropped $2.6 to a close of $66.2 and a daily TCE earning equivalent of $66,464.