LNG freight rates fall as tighter vessel supply lifts LPG shipping

LNG shipping rates weakened over the week even as chartering requirements increased, while LPG freight strengthened on more restricted vessel availability. Hellenic Shipping News, reporting Baltic Exchange figures, said additional LNG spot, multi-month and longer-term demand had not absorbed the available tonnage. In LPG, outstanding cargoes and a widening arbitrage helped support the market.

All three reported LNG routes recorded weekly declines. The BLNG1 Australia–Japan assessment dropped $2,300 to $34,600/day. Although the Pacific remained relatively balanced, the increase in cargo activity was not enough to counter available vessel supply. In the Atlantic, charterers retained their advantage as the vessel list outstripped cargo requirements despite more enquiries. The BLNG2 US Gulf–Continent rate fell $4,900 to $21,200/day, while BLNG3 US Gulf–Japan lost $4,200 to finish at $52,100/day.

The softer LNG market also extended across the reported time-charter periods. Six-month rates declined $1,600 to $46,300/day, and the one-year assessment slipped $334 to $52,033/day. The three-year rate eased $350 to $69,950/day. Those declines accompanied the weaker voyage assessments, with increased activity compared with recent weeks still insufficient to reverse pressure on freight across the two basins.

LPG conditions moved in the opposite direction, with fewer available vessels relative to requirements and cargoes still seeking cover. According to the report, BLPG1 Ras Tanura–Chiba finished at $265.00/tonne, equivalent to time-charter earnings of $258,182/day. On BLPG2 Houston–Flushing, freight rose $18.00 during the week to $190.83/tonne. Its time-charter equivalent increased $25,114 to $227,905/day, supported by the tight position list and outstanding cargo demand.

The BLPG3 Houston–Chiba route also advanced, adding $22.00 to reach $344.71/tonne. Its time-charter equivalent rose $15,331 to $214,030/day. Hellenic Shipping News attributed the route’s steady weekly gains to improving eastbound economics and limited vessel availability, contrasting with the excess LNG tonnage that continued to weigh on that market.