LNG

The bearish sentiment in the LNG market shows no immediate signs of abating, with weak fundamentals continuing to dominate. In the Pacific, the market remains under pressure, exacerbated by size constraints on cargoes. The rate differential between 174,000 cbm and 160,000 cbm vessels has narrowed further, now holding at approximately $7,000. The Baltic BLNG1 Aus-Japan route rates declined, with the larger 174,000 cbm two-stroke vessels bearing the brunt of the downturn, dropping $4,800 to settle at $21,200. Meanwhile, the 160,000 cbm TFDE ships fared slightly better but still fell by $1,800 to close at $14,200.

In the US, there was some activity in cargo fixing, but the overall market sentiment remained subdued. The BLNG2 Houston-Cont route for 174,000 cbm two-stroke vessels saw a modest increase of $1,300, closing at $22,400, while the 160,000 cbm TFDE index rose $800 to finish at $14,600. On the BLNG3 Houston-Japan route, rates were mostly flat. The larger 174,000 cbm ships recorded a slight uptick of $200 to $28,400, while the smaller 160,000 cbm TFDE vessels slipped by $400, settling at $17,400.

The period market witnessed some activity this week, highlighted by a short-term fixture and reports of an index-linked structure deal. Baltic period rates, however, remained relatively stable. The six-month rate edged up by $50 to $27,400, while the one-year term rate declined slightly to $36,750. The three-year period rate experienced a more significant drop, closing at $53,850. Despite these developments, the overall outlook for the LNG market remains bearish, with little indication of a near-term recovery.

 

LPG

The LPG market experienced a noticeable uptick in rates this week, with gains observed across both basins and all three routes. In the East, the approach of the Christmas season has sustained demand, with cargoes still waiting to be fixed. While the vessel list appears capable of covering the increased activity, the market sentiment has turned bullish as the year-end approaches. BLPG1 Ras Tanura-Chiba rose by $8.75, closing at $58.917, which translates to a daily TCE equivalent of $41,868.

In the Atlantic, both US routes experienced a healthy level of activity. BLPG2, which often lags behind BLPG3, saw increased interest this week, with several inquiries positioning it as a more significant driver of rate direction than usual. BLPG2 Houston-Flushing climbed by $7.25 to reach a final rate of $63, corresponding to a TCE equivalent of $64,030. Meanwhile, BLPG3 Houston-Chiba also remained active, supported by a tighter tonnage list. Several outstanding potential cargoes are keeping brokers bullish sentiment strong which was shown when rates for BLPG3 increased by $12.833, closing at $113.833, yielding a TCE equivalent of $48,727. This marks one of the most positive weeks for LPG rates in recent weeks.