The Baltic Exchange: Gas report - Week 40
The Baltic Exchange: Gas Report - Week 40
LNG
The LNG spot market has been subdued, With rates falling, it would seem to be the result of the same old stories; requirements are low with few tenders/cargoes offered, greater than expected ship availability, gas storages are well above previous levels - the list goes on. But we are fast approaching the main fixing window of winter, with cargoes now being shown for end November and coming into December some brokers believe that there will be changes afoot.
Rates themselves were softening as Aus-Japan BLNG1g fell $22,461 week-on-week to close at $163,608 while out in the Atlantic both BLNG2g and BLNG3g lost just shy of $30,000 to finish at $140,635 and $170,035, respectively, for Houston-UKC and Houston-Japan.
LPG
The LPG market has seen quite a turnaround of late. Within a few weeks of the highest rates ever recorded on the Baltic LPG Index, we have seen a further $42.286 overall fall on BLPG1 Ras Tanura-Chiba. Now it seems that the market has begun to turnaround with rates rising again as the week closes out. Brokers and owners are bullish once more and rates are expected to continue rising, but if we will see such market highs again are up for debate. The actual index is still strong, for BLPG1 Ras Tanura-Chiba we closed at $114.143, giving a daily TCE below $100k per day, which is still very good returns for owners.
BLPG2 and BLPG have seen some similar shaving off their overall rates, Houston-Chiba BLPG3 lost $17 over the week to close at a very respectable $214.85, although some market participants have reported a ship closer to $220 already on subs. Daily TCE earning is still strong and owners will not be complaining while they are expected to earn around $127,333 for a round trip voyage. BLPG2 Houston-Flushing has not been quite as active and has lost $14.6 on the week but finished at $115.8 giving a daily TCE earning of $136,192. Despite corrections across all markets the LPG outlook is positive, and owners and brokers alike are very positive.
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