LNG

The main piece of news on the lips of the LNG community this week was the shock announcement from the US administrations on a temporary pause in awarding export permits for potential LNG liquefaction projects. The impact not initially seen, could be far reaching in terms of volume, and with many ships due to come onto the water a drop in volume could harm freight rates quite significantly. Meanwhile, it is business as usual for the LNG spot market, some reversal of the downward trend seen of late begun with the influx of cargoes out in Australia but with one going cheap, it couldn’t stimmy a further drop. Rates for BLNG1 Aus-Japan fell on both the 160cbm and 174cbm with the routes publishing at $35,390, and $52,526 respectively. The Atlantic was busy as well with several cargoes worked and eating into a longer tonnage list, but with fixing windows quite far out there wasn’t enough appetite to change the tide and rates remained flat.

BLNG2 US-Cont finished up on the 160cbm at $39,118, while the 174cbm lost a small percentage to close at $51,147. BLNG3 US-East couldn’t shake off the doldrums and both the 160cbm and 174cbm ships closed lower, with the 160cbm at $39,131 while the 174cbm finished at $49,145.

Period softened again with little reported, the six month TC on a 174cbm dropped $5200 to $52,700 while one Year and three year TC closed at $74,067 and $88,000 respectively.

 

LPG

There is not much positive news to write about on this week’s BLPG, though brokers have reported fixtures (similar in numbers to the same time last year) the routes have all continued to suffer. With BLPG1 Ras Tanura-Chiba falling $8.857 (a drop of 21.83%) and publishing at $31.714 we have begun to really hit the bottom. A ship failing at $31 wasn’t beaten any lower and the ebbing tide hopefully is turning for LPG.

Across the Atlantic the BLPG2 Houston-Flushing fell by $12.4 (-23.85%) to close at $39.6 giving a daily TCE earning of $28,180 per day, this has been the lowest rates seen for some time and owners are not really able to get charterers to pay up. BLPG3 Houston-Chiba has seen the biggest fall in terms of dollars but from a higher point meant overall it wasn’t the worst performing route, uncertain footing and a poor product market meant a loss of $18.714 (20.3%) and a final publication of $73.429 with a daily TCE earning of $17,852.