The Baltic Exchange: Gas report - Week 21
The Baltic Exchange: Gas report - Week 21
LNG
The LNG market didn’t quite know what to make of itself this week. Rates moved marginally against some activity in both basins but the Pacific remains the most active. There were reports of an Intra-Pacific basin done on a 2-Stroke ship in the mid $60,000s, although this had little effect on the BLNG1g Aus-Japan numbers that finished at $37,370 RV, a rise of only $256 on the week. Vessel availability remains high but positions aren’t necessarily that firm which has undermined the certainty of charterers looking for tonnage. Expectations from some is that with the ARB looking like it could open markets will change but for the moment the index sat quite flat.
In the Atlantic a long tonnage list and little fixing kept rates stable. There was one reported fixture for July loading but with worldwide flexibility it wasn’t quite in line with the Baltic Index. Nevertheless rates fluctuated with BLNG2g Houston-UKC losing $2,509 to close at $32,625, while BLNG3g (which has some soft expectations of rising more as the Arb opens) rose by $1,233 to finish at $36,791. LNG prices in the EU have plunged as storage inventories increased and mild weather created weaker demand this all points to an opening of the ARB to the east where expectations are optimistic in an increase of activity.
LPG
A continued bull run on the LPG market has seen the three routes rally this week. Out in the AG there was an influx of cargoes mid-week that had the owners clambering to get offers in, but despite the level of activity there wasn’t quite the rush of fixing. Rates rose steadily finishing $5.286 up on the week to close at $106.143, with the level of activity remaining and the momentum of the week suggests that there is more in the tank and further rises are entirely expected. TCE earnings improved nearly $6,000 to finish at $92,653, which is very healthy for this time of the year.
The Atlantic improved even more seeing a rise of $10 for Houston-Chiba BLPG2 closing at $157 (with a TCE earning of $84,099 per day round trip). Some market participants see this going higher but there could be a moment of peace while charterers take stock and weigh up options. Fixing windows have moved out again, and with some ships still uncertain coming through the Panama Canal the list could change quickly. On Houston-Flushing BLPG2 earnings moved 10% higher and finished at $95.2 with a daily TCE earning of $109,887 per day round trip.