LNG Spot Market Stagnates While LPG Rates Continue Upward Trend
The LNG spot market experienced a flat week with stable tonnage and inquiry levels, leading to minor rate adjustments on key routes. Conversely, the LPG market saw continued rate increases across all vessel sizes and regions, driven by strong demand and tight vessel availability.
The Liquefied Natural Gas (LNG) spot market maintained a relatively flat trajectory this week, characterized by a balance between available vessel tonnage and chartering inquiries across both the Atlantic and Pacific basins. On the BLNG1 route, connecting Australia to Japan, rates for 174,000 cubic meter vessels saw a slight decrease of $1,700 week-on-week, settling at $64,800 per day. This minor adjustment reflects subdued activity in the Pacific region and a well-matched supply of vessels, keeping the market steady but under slight downward pressure.
In contrast, the Liquefied Petroleum Gas (LPG) market demonstrated a consistent upward trend in rates across all vessel categories. Very Large Gas Carriers (VLGCs) experienced notable gains, with the BLPG1 route (Middle East Gulf to Japan) increasing by $12,714 to reach $109,286 per day. Similarly, the BLPG2 route (US Gulf to Continent) rose by $10,500 to $92,000 per day, and the BLPG3 route (US Gulf to Japan) climbed by $11,000 to $115,000 per day. These increases are attributed to robust demand and limited vessel availability, particularly for VLGCs.