Gas report - Week 49
LNG
The LNG spot market continued to stagnate this week, with rates remaining relatively flat amid limited activity. In the Pacific, the double hit of lengthy tonnage lists and elusive cargo opportunities are putting pressure on rates. The BLNG Australia-Japan route for 174k cbm 2-stroke vessels edged up slightly by $200 to $26,000. Meanwhile, the 160k cbm TFDE vessels saw no movement, holding steady at $16,000. With little new enquiry and most activity centred on the Trans-Atlantic market, expectations of any significant rate increases remain low.
The U.S. market displayed more activity this week, with a few vessels put on subs for late-December cargoes, likely destined for Europe rates lifted slightly. The BLNG2 Houston-Isle of Grain route for 174k cbm 2-stroke vessels rose by $3,700 to $21,100, while the 160k cbm TFDE index mirrored this movement, climbing to $13,800. Conversely, the BLNG3 Houston-Japan route remained subdued, reflecting the muted intra-basin activity and continued challenges in the Pacific market. Rates rose modestly, more due to upward pressure from BLNG2 than actual fixing activity. The 174k cbm 2-stroke index gained $1,000 to publish at $28,200, while the 160k cbm TFDE index rose by $2,500 to $17,800.
The period market remains largely inactive, with most discussions shifting toward index-linked charters, if they are taking place at all. With rates so low, owners are hesitant to commit to deals anywhere from multi-month charters to terms of up to three years. The Baltic 6-month period index published at $27,350, while the 1-year term dropped to $37,550. The 3-year period showed the most significant decline, falling by $2,650 to $55,350.
With limited Pacific activity and slight improvements in the Atlantic, the market remains subdued overall. Rate movements will likely depend on further developments in U.S.-Europe trade and any significant changes in Pacific cargo activity.
LPG
The LPG market continued its subdued performance this week. Following two weeks of inactivity, the Middle East Gulf (MEG) BLPG1 Ras Tanura-Chiba Baltic route saw only a single reported fixture, originating from India. As a result, rates remained largely stagnant, declining by just $0.16. The Baltic published BLPG1 at $50.333, reflecting a slight drop in daily TCE earnings to $31,376, down by only $208 for the week.
In the Atlantic, activity picked up slightly, but with the tonnage list beginning to grow, a bearish sentiment appeared to influence the market. The Baltic BLPG3 Houston-Chiba route dropped by $4.50, settling at $100.833. This corresponded to a daily TCE earning of $37,535. Meanwhile, BLPG2 Houston-Chiba saw no reported fixtures; its rates moved in tandem with the BLPG3 print, falling by $3 to close the week at $55.75, with a daily TCE earning of $54,270.
While the MEG market remains flat, the Atlantic's growing tonnage and declining rates hint at potential further bearish trends in the coming weeks.