The LNG freight market firmed significantly this week, particularly in the Atlantic basin, as fresh fixture activity and chartering demand drove rates higher. Pacific markets also showed resilience, though gains were more modest.

On the BLNG1 Gladstone–Tokyo route, 174k cbm vessels rose $400 to $22,800 per day, while 160k cbm vessels held steady at $13,800 per day. The stability in the Pacific underscores a balanced market, with charterers covering May positions in line with expectations.

The Atlantic basin showed renewed strength. On the BLNG2 US Gulf–Continent route, 174k cbm rates increased by $3,300 to $40,400 per day, while the 160k cbm equivalent climbed modestly $400 to $19,600 per day. The BLNG3 Sabine–Tokyo route saw the biggest jump, with 174k cbm rates up $5,200 to $47,000 per day, and 160k cbm vessels gaining $1,400 to $24,300 per day. These increases reflect a tighter tonnage list and bullish sentiment in the West.

The time charter market also saw modest gains. The 6-month rate increased by $550 to $31,600 per day, while 1-year charters moved up $400 to $34,800 per day. The 3-year rate ticked up $100 to $53,950 per day, pointing to steady medium-term demand despite broader macroeconomic uncertainties.

LPG
It was a quiet week in the LPG freight market, with rates trending marginally lower across all major routes. Market activity remained subdued, and unless the arbitrage improves, pressure is likely to remain on freight values.

On the BLPG1 Ras Tanura–Chiba route, rates fell by $2.67 to settle at $47.67, equating to a TCE of $31,500 per day, down $2,027 week-on-week.

The BLPG2 Houston–Flushing route slipped $0.75 to $53.00, with the TCE nearly flat at $53,009 per day. Despite minimal movement, the route remains in focus as traders eye summer demand patterns in Europe.

On the BLPG3 Houston–Chiba route, rates edged down by $1.17 to $101.50, though TCE values rose minimally by $75 to $37,758 per day.

Overall, the market awaits clearer signals. Either a pickup in cargo demand or a meaningful improvement in arb economics is needed — otherwise, freight could soften further heading into May.

Source: Baltic Exchange