LNG

The LNG market showed signs of activity as many participants returned to their desks following the holiday break. However, more tonnage than anticipated surfaced in the market, providing cargoes with a wide range of options. As a result, the firm and steady rates observed during the final weeks of 2024 have come under pressure, however brokers remain optimistic due to ongoing fixing opportunities.

On the BLNG1 Australia–Japan route, both the 174k CBM 2-stroke and 160k CBM TFDE segments posted marginal declines. The 2-stroke index closed at $21,700, while the TFDE index ended the week at $14,000. BLNG3 Houston–Japan showed mixed results, with the 174k CBM index dropping by $800 to close at $30,500, while the 160k CBM index rose by $1,100 to end at $20,400. BLNG2 Houston–Continent followed a similar pattern, with the 174k CBM index declining by $979 to close at $24,021, while the TFDE index rose by $800, closing at $16,400.

The period market began on a positive note, with a reported index-linked charter done at a slight discount to the published rate. However, with only one reporting day so far, Baltic period rates were posted at $24,750 for six months, $32,492 for one year, and $44,300 for three years.


LPG

A frosty start to 2025 has mirrored the sentiment in the LPG market, where fewer-than-expected fixtures in January for the Middle East Gulf (MEG) have caused rates to soften slightly. A lengthy position list combined with a reduced number of stems being shown pushed BLPG1 rates down by $3.5, closing the week at $57.667 and yielding a daily TCE earning of $39,025.

Across the Atlantic, only a handful of spot fixtures were concluded, with levels in the low $100s. Nearly all of these fixtures were on relet ships, resulting in a tonnage list heavily populated by independent shipowners. This overcapacity could put further downward pressure on rates in the coming weeks. BLPG3 Houston–Chiba experienced a $7 decline, closing at $102.5, with a daily TCE equivalent of $38,221. Sentiment on this route remains bearish among brokers. BLPG2 Houston–Flushing, the least liquid of the routes, saw a $3.75 drop, closing at $56.875 and delivering a TCE of $55,015 for the week.