LNG

The LNG spot physical market continues to decline, with weak demand in both the Pacific and Atlantic markets. Despite very low rates, charterers remain reluctant to take on tonnage. While some suggest that the presence of many market participants in Dubai for the Bahri Week events could be influencing the softness in rates, the primary driver behind the downward trend is the combination of long tonnage lists and limited cargo demand. BLNG1 Aus-Japan for both the 174cbm and 160cbm ships fell by $4600, with the 2-stroke index closing at $27,800 while the 160cbm TFDE index finished at $16,900.

BLNG2 Houston-Cont was up for both ships, the only route to see any positive movement this week. However, the recent gain in rates will not outstrip the several weeks of negativity. BLNG2 on the 174cbm 2-strokes was up by $5200 to $25,300 while the TFDE 160cbm index gained $1400 to $14,000. BLNG3 Houston-Japan saw a slight uptick on the 174cbm index rising by $1400 to $32,700 while the 160cbm TFDE index fell by $400 to $20,000.

The Baltic Period rates all suffered a fall but with little to report and negotiations taking place privately, it was less clear to see any direction. Our 6-month period published down at $30,850, the 1-year at $43,800 and the 3-year period published at $62,700.

 

LPG

The continued bull run in the US has further widened the gap between BLPG1 and BLPG3, a recent spate of fixing and a tighter tonnage list has pushed rates ex-US higher while the Middle Eastern market remains flat. Sentiment is steady and there is a hope that this will help push rates higher. BLPG1 Ras Tanura-Chiba moved higher by $1.278 giving a final publication price of $48.945 and a daily TCE earning equivalent of $28,910 up $1505 on the week.

BLPG2 Houston-Chiba rose by $8.417, a strong gain on the week, which meant that TCE earning was up $7168 as well, and a final publication of $107.25 gave the market hopes going into the weekend that there will be a continued drive on rates next week. BLPG2 Houston-Flushing was quiet with little market interest, rates rose roughly in line with BLPG3 moving up $3.25 and closing at $58.5, and a final TCE earning of $57,542.