LNG

The LNG market saw a flurry of activity before IE week, with the previously static conditions loosening slightly. This week brought positive movement particularly in the Atlantic basin for 2-stroke tonnage, while the Pacific maintained a steady outlook.

On the BLNG1 Gladstone–Tokyo route, 174k cbm vessels remained unchanged at $10,900/day. However, 160k cbm vessels saw a modest $200 increase, reaching $5,400/day, signalling a slight recovery in smaller vessel earnings.

In the Atlantic, the BLNG2 Sabine–UK Continent route saw 174k cbm rates rise by $2,000 to $6,800/day, while 160k cbm vessels remained flat at $1,300/day. Meanwhile, the BLNG3 Sabine–Tokyo route posted a $1,400 gain for 174k cbm vessels, bringing rates to $10,000/day, whereas 160k cbm vessels held steady at $2,600/day.

The term market saw minor declines, with six-month rates falling by $150 to $15,200, one-year rates dropping $150 to $23,250, and three-year rates slipping $50 to $45,900. This week's outlook appears slightly more positive than the previous, particularly for western 2-stroke tonnage. However, whether this trend will persist remains uncertain.

 

LPG

This week, the LPG market has generally trended upward. BLPG1 Ras Tanura to Chiba rates rebounded by $2.50, closing at $44.83, with TCE earnings rising by $2,414 to $25,305. The upward movement was driven by an increase in available cargoes, creating a bullish undertone to end the week. While this signals some recovery from last week’s decline, volatility remains a key factor.

In the Atlantic, the BLPG2 Houston–Flushing route remained largely stable, reflecting the lack of activity, with a minor increase of $0.06, settling at $47.31. However, associated TCE earnings declined by $288, closing at $40,712, suggesting a slight tightening of earnings despite the minor increase in freight rates. The BLPG3 Houston–Chiba route saw a modest increase of $0.50, with the final rate settling at $91.50. TCE earnings improved by $379, reaching $26,770.

While there are signs of recovery in some routes, the market still remains under pressure due to fluctuating vessel supply and demand dynamics.