LNG

The LNG shipping market has seen a further decline in sentiment. Driven by excess tonnage, a lack of cargoes and delays at Freeport, the market experienced another downturn, with the most recent fixture involving a 2-stroke deal being made at sub-$10,000 and less than 100% round-trip earnings.

The BLNG1 Australia–Japan route for both 160k cbm TFDE and 174k cbm 2-Stroke vessels saw declines, with rates dropping by $1,600 and $1,800 respectively. The TFDE index closed at $8,600, while the 2-Stroke index ended at $15,400. Despite these declines, The Pacific market performed better than the Atlantic, where both the BLNG2 and BLNG3 routes saw even sharper drops.

For BLNG2 Houston–Continent, the 174k cbm 2-Stroke index fell by $8,100, closing at $9,500, while the 160k cbm TFDE equivalent dropped by $5,400 to $4,400. This represents some of the lowest rates recorded in LNG market history. The BLNG3 Houston–Japan route recorded the largest decline of the week, with the 174k cbm 2-Stroke index falling by $8,900 to $14,200, and the 160k cbm TFDE index dropping by $7,800 to close at $7,100.

The term market also saw very little change. Short-term rates increased slightly by $450, settling at $25,200 for six-month charters. One-year rates decreased by $600, closing at $30,725, while three-year rates saw a modest increase of $1,700 to $48,250. These minimal fluctuations reflect the lack of interest in longer-term charters. With the growing supply of vessels, period rates are not expected to recover soon.


LPG

This week, the LPG market experienced a noticeable bearish shift, with declines observed across key routes. BLPG1 Ras Tanura to Chiba saw a sharp drop, with rates falling by $12, closing at $47.33. This decrease also impacted daily TCE earnings, which fell by $12,573, settling at $27,075. The drop in rates highlights a weaker demand for vessels in this route, further adding to the overall negative sentiment.

In the Atlantic, both BLPG2 and BLPG3 faced downward pressure as a softer bearish sentiment took hold. BLPG2 Houston–Flushing saw a decrease of $2.63, closing at $53.25. Daily TCE earnings also saw a decline, falling by $3,488 to close at $49,002. This reflects the broader trend of diminishing activity in the Atlantic basin. Meanwhile, BLPG3 Houston–Chiba experienced a $1.92 drop, largely attributed to vessels being listed with no inquiries, pointing to a further weakening in demand for this route. The Baltic final published rate for BLPG3 settled at $97.58, with TCE earnings of $33,160. The overall outlook for the market remains cautious, as these declines suggest a period of reduced activity and potential further pressure on rates in the near term.