LNG

The LNG market continued its upward trajectory this week, with gains across major routes, particularly in the Atlantic basin, while the time charter market showed mixed movements.

On the BLNG1 Gladstone–Tokyo route, 174k cbm vessels saw an increase of $1,600, reaching $20,800 per day. 160k cbm vessels also gained $1,200, settling at $12,200 per day, reflecting steady week on week improvements in earnings for smaller vessels.

In the Atlantic, the BLNG2 Sabine–UK Continent route experienced gains, with 174k cbm vessels increasing by $4,400 to $25,600 per day, indicating stronger demand for westbound cargoes. Similarly, 160k cbm vessels rose by $1,700, reaching $13,800 per day.

The BLNG3 Sabine–Tokyo route also saw positive momentum, with 174k cbm vessels climbing by $3,300 to $27,700 per day, while 160k cbm vessels gained $1,800, reaching $15,400 per day, reinforcing a bullish sentiment for long-haul trades.

Meanwhile, the time charter market showed mixed movements, with 6-month rates falling by $1,000 to $17,150 per day, while 12-month rates edged up by $500 to $23,575 per day, and 3-year rates declined by $1,300 to $48,200 per day. Despite short-term tightness in the spot market, the uncertainty in long-term rates suggests a more cautious market outlook beyond the immediate surge in demand.

LPG

The LPG market saw a strong upward movement this week, with significant rate increases across key routes, reflecting tightening vessel availability and increased demand, especially in the west.

On the BLPG1 Ras Tanura to Chiba route, rates increased by $6.86, reaching $53.03, while TCE earnings jumped by $7,129, closing at $36,002. This sharp increase signals renewed bullish sentiment in the Middle East, stimulated by increased movement out of the US and a tightening of vessels.

In the Atlantic, the BLPG2 Houston–Flushing route experienced a $5.00 rise, settling at $53.50. TCE earnings increased by $6,831, reaching $51,853, marking a strong improvement in earnings potential.

Meanwhile, the BLPG3 Houston–Chiba route saw an even greater jump, rising $12.58 to $104.83, indicating robust market fundamentals. TCE earnings also soared by $9,452, reaching $38,874, reinforcing the market’s positive momentum.

With tightening vessel supply and firming demand, the LPG market appears to be in a strong position. However, continued monitoring is necessary to assess whether this bullish trend will persist.
Source: Baltic Exchange