LNG

The recent uptick in spot market rates, particularly for the 174cbm vessels, can be attributed to a combination of increased cargo demand and a tightening tonnage supply. However, while this rate rally may offer some temporary optimism, it’s important to note that these gains are coming from already low freight levels, which limits any cause for significant celebration.

For the BLNG1 Aus-Japan route, rates for the 160cbm TFDE ships remained unchanged at $16,000. In contrast, the 174cbm 2-Stroke ships saw a modest increase of $2,200, bringing rates to $25,800. Despite this improvement, the Eastern market continues to face several challenges, keeping sentiment cautious.

On the BLNG2 Houston-Cont route, both vessel types saw positive movement, but the gains were minimal. The 160cbm TFDE index rose by just $400 to $10,700, while the 174cbm 2-Stroke ships increased by $2,200 to $17,400. However, these modest adjustments didn’t inspire much optimism, with the holiday season not yet bringing the expected boost to sentiment.

The Baltic BLNG3 Houston-Japan route saw the most significant gains, with the 160cbm TFDE index rising by $800 to $15,300, and the 174cbm 2-Stroke vessels up by $4,000 to $27,200.

Meanwhile, period enquiry remained subdued. For owners with longer-term commitments or available cargoes, optimising spot positions on index-linked charters is often proving to be more attractive than locking in periods. The 6 month period rate in the Baltic market dropped by $1,100 to $27,250, while the 1 year period rate fell to $39,650. The 3 year period saw a decline of $2,200, closing at $58,000.

 

LPG

The first two decades of December have shown a notably quiet cargo stem list, signalling that the current low level of activity, along with flat rates, could persist through to Christmas. Only one or two fixtures from the Middle East Gulf (MEG) and West Africa (WAFR) were reported, leaving little room for significant market movement.

In the MEG, rates for the BLPG1 Ras Tanura-Chiba route saw a slight dip of 50 cents after a brief rise mid-week, peaking at $51.667. The final index settled at $50.833, reflecting a daily TCE equivalent of $31,417.

Across the Atlantic, the rate fluctuations were similarly subdued. Both the BLPG2 Houston-Flushing and BLPG3 Houston-Chiba routes experienced minor movements, adjusting by 50 cents and 42 cents, respectively. A handful of fixtures from Houston-Chiba offered some direction to the market, but with tonnage levels aligning closely with available cargoes, there was little to disrupt the market's stagnant state going into the weekend.

By the close of the week, the BLPG3 Houston-Chiba route finished at $105.667, up by 47 cents, resulting in a daily TCE equivalent of $40,846. Similarly, BLPG2 Houston-Flushing saw a 50-cent increase, closing at $58.75, with a TCE of $58,142.