Gas report - Week 28
LNG spot has been particularly quiet this week, with demand for spot ships down. Reports of only cargo loading in the US for export in August with discharge Europe has kept rates flat. In the Pacific some enquires have been made but loading in Southeast Asia while Australia remains quiet. One other factor contributing to the overall lack of activity is that LNG 2023 has been on this week out in Vancouver where many market participants have been enjoying themselves. With the usual summer doldrums and particularly high storage of gas worldwide it was not expected that rates should do much other than hover.
Following the lack of open interest, rates did not move much, BLNG1g for Aus-Japan fell by $340 to close at $67,535. While in the Atlantic, US rates saw slightly larger falls with BLNG2g US-UK publish at a round voyage number of $69,670 and US-Japan fell nearly $2,000 to close at $82,357.
Following quite a tumultuous week last week, LPG has taken a step back. The BLPG1 Ras Tanura-Chiba route was relatively flat this week in comparison, with only one report of a fixture done as a replacement. Rates themselves rates fell by $4.143 to close at $110.143, which gave a daily TCE return of $97,320. Sentiment is flat and, though the direction could go either way, brokers feel there is a status quo for the moment between supply and demand.
It was a similar story in the US. Rates barely moved at all throughout the week losing just $1 on BLPG3 Houston-Chiba to close at $174.714 while BLPG2 Houston-Flushing gained $1 to finish at $102.4. This had minimal effect on the daily TCE earnings, which for an eastern run sit now at $98,288 and for Houston-UKC a rise of $608 gave a daily TCE earning of $119,480. The tonnage list is looking tighter and delays in Panama are still on the radar, but so far this has not affected rates much.