LNG

This week has seen a potential turn in the short-term market, particularly in the Atlantic Basin.

There has been an increased enquiry for liftings from the US Gulf, Algeria, and West Africa to indicate a possible rise in rates, though the Eastern market remains stagnant and risks losing its two-way economics. Despite this, the presence of numerous vessels in the West may temper rate increases in the near future.

Rate assessments on a weekly basis for Gladstone/Tokyo were about $2,000 per day firmer for the 160kCBM vessel and $400 per day firmer for the 174kCBM vessel at $32,706 per day and $47,675 per day, respectively. In the Atlantic the 160kCBM vessel lost around $700 per day for the Corpus Christi/Isle of Grain route while the 174kCBM vessel gained about $1,000 per day to be assessed at $32,955 per day and $45,752 per day. The BLNG3 (US Gulf-Japan) fared similarly, being assessed at $38,996 per day (down $450 on last week’s assessment) on the 160kCBM vessel and $53,069 per day (a weekly gain of about $1,500) on the 174kCBM vessel.

There is a positive sign with growing enquiries for longer term period chartering, some of which are securing fixtures at rates well above current spot assessments, with six-month rates assessed at $64,000 against an average spot of under $48,000 and the three-year rate at $80,700.

In terms of vessel transactions, the market is witnessing a rise in potential sale and purchase activities, with several steam ships and TFDE vessels currently under consideration for sale.  

As more vessels are released from long-term charters, the availability of steam vessels is expected to increase further which could negatively impact rates should these come into the spot market.

LPG

Following a slow start to the week and with rates stable BLPG1 index rose incrementally to close at $64.429 (an actual fall of $0.65 on the week) after bottoming out at $63 giving a daily TCE of $43,216. The acceptances by Saudi Aramco being released on Tuesday helped stimulate some positive movement but with tonnage reported as plentiful it remains to be seen if that can be maintained.

The US market has mirrored the Middle East this week both BLPG2 and BLPG3 hitting a floor and improved later in the week. Houston-Flushing BLPG2 climbed to $68.4 from $67 after reaching amid week bottom of $66. A daily TCE earning on a round voyage is currently at $68,186. While Houston-Chiba gained $1.429 giving a closing index value of $124.286 and a daily TCE earning of $49,297. Overall enquiry has picked up this week in the West however vessel supply looks to be keeping the market balanced for the moment.