LNG

Another quiet week for the LNG spot market. After a surge in spot enquiries last week, owners and brokers are now seeing very little activity. The market has experienced a significant drop across all three routes and for both ship sizes. Continued pressure from an oversupply of tonnage, combined with limited enquiry, is preventing any recovery in spot rates. BLNG1 Aus-Japan held the most ground amongst the three routes with the 160cbm TFDE ship losing only $900 to close at $16,000 while the 174cbm 2-Stroke index lost $4200 to finish at $23,600.

BLNG2 Houston-Cont felt the cold with a drop of $10,100 on the 174cbm 2-Stroke index down to year lows of $15,200 while the 160cbm TFDE index lost a little less at $3700 but is still feeling the pinch publishing at $10,300. Worries now of potential negative earnings for ships could be a reality if LNG bunker prices continue to rise and freight remains flat the market is in for a frosty winter. BLNG3 Houston-Japan saw one fixture with an option in high teens but the 174cbm 2-Stroke ships losing $9500 published just higher at $23,200 and the 160cbm TFDE ship lost $5500 to close out at $14,500.

Period would have been the focus of many brokers as the spot market stagnates, but with rates for multi month and short terms coming down, there is lack lustre sentiment and availability of terms from charterers outweigh availability of ships. The Baltic 6-month published at $28,850 while our 1-year term was down to $41,550. The 3-year period also felt the pinch down $2500 to $60,200.

 

LPG

The Eastern market has been active, with several cargoes fixed, causing the index to fluctuate, reaching a high by the end of the week. Some confusion over parcels led to a midweek dip, but rates finished positively due to a solid tonnage list and high levels of activity. Rates for BLPG1 Ras Tanura-Chiba were up $2.222 to close at $51.167 which gives a daily TCE Earning equivalent of $31,709 a rise of $2484 over the week.

While the Eastern market kept moving higher, the US market was happy to stay flat. BLPG3 Houston-Chiba was dominated by few owners and as a result rates remained steady, there will be the need for cargoes if they want to stave off any sentiment driven correction. Rates moved negatively by $1.584 to a close of $105.583 which gave a daily TCE earning equivalent of $40,703. BLPG2 was predictably quiet moving only 25 cents on the week down to $58.5 and a daily TCE earning equivalent of $57,713.