LNG

There has been continued downward pressure on the LNG spot market in the East. The limited demand for fixing has been overshadowed by falling rates, and with several enquiries being sold on a FOB basis, there are fewer stems for ships to bid against. Rates on the 174cbm 2-stroke BLNG1 Aus-Japan route lost $2814 down to $32,400, while the 160cbm TFDE ship index fell by $3009 and closed at $21,500.

The Baltic BLNG2 Houston-Cont has been relatively active. There have been discussions on both 174cbm and 160cbm ships, but rates have still been moving south. With the 174cbm 2-stroke ships now moving up to $20,100, there seems to have been a bottom hit, and owners are beginning to push back on levels. The 160cbm TFDE ship is still hovering in the low teens with a final publication of $12,600 down $700 on the week.

BLNG3 Houston-Japan saw a similar downward trend that BLNG1 had, and rates dropped by $1624 on the 174cbm 2-stroke to $31,300 while the 160cbm TFDE fared a little worse, moving down $2636 to a close of $20,400. All in all, the spot LNG market is not seeing the upward trend that is usually associated with winter, and with the Baltic BFA seeing trades for Cal25 and Cal26 at low levels, this pressure on rates looks to remain throughout next year as well.

Period remains flat with a few enquiries for 1-year and potential multi-month deals in the works, but all three Baltic periods dropped. Our 6-month period fell by $5550 to $33,800 while the 1-year fell to $47,100. Our 3-year term closed at $64,550.

 

LPG

There were few fixtures or negotiations taking place this week, and of those concluded one was already looking into the December fixing window. Our BLPG1 Ras Tanura-Chiba route dropped down by $6.065 giving a final publication price of $47.667 and a daily TCE earning equivalent of $27,305.

While the US comes to grips with the recent election results, the market took a step back as well. With few reported fixtures and a tonnage list growing slowly, longer rates have remained steady, if flat. For BLPG3 Houston-Chiba a drop of 50 cents pushed the index down to $98.333 giving TCE earning equivalent of $33,686. BLPG2 Houston-Flushing moved down as well a little more by 75 cents, but with a published rate of $55.25, there was little change in interest or sentiment. TCE Earnings were down by $1836 giving $52,494 per day.