The Baltic Exchange: Gas report - Week 44
The Baltic Exchange: Gas report - Week 44
LNG
While the LPG market has been significantly rocked after the Panama Port Authority cull on crossings per day, the LNG market has reacted a little more mutely. The affect is still to be absorbed but the big increase in waiting times, or potentially much higher tonne miles via the Cape, will no doubt affect routing and pricing. As the LNG market has shifted focus towards Cont deliveries from the US, there have been fewer Panama canal transits to be affected, but it will not go unnoticed.
Rates have been flat despite the reported flurry of fixtures this week and the reduction of available ships. Reports of cargoes working out to December laycans in both the Med and Middle East has not pushed rates much, but all three routes closed positively. BLNG1g Aus-Japan rose $4,943 to finish at $144,644, while the Atlantic BLNG2g US-Cont rose to $162,179 and BLNG3g US-Japan finished at $181,632. Period rose for multi-month deals with the one-year and three-year terms flat/soft, while many players take stock over what happens in the short term.
LPG
A quiet week on the LPG Eastern market with few fixtures reported. November is not shaping up to be overly busy either and with balanced tonnage vs. enquiry rates look stable. We have seen a rise for BLPG1 on the week with Ras Tanura-Chiba rising $10 overall to close at $141.571 while TCE earnings moved up to finish at $128,239 for a round voyage trip.
BLPG2 and BLPG3 have both been more active but rates are mainly buoyed on the recent news coming out of Panama. With one VLGC ship reportedly paying a whopping $2,800,000 for a slot to go through and the Panama Canal port authority reducing daily passings dramatically, there is upset and volatility on the horizon. Tight tonnage supply against opening of the arb is causing stiff rises. BLPG3 Houston-Chiba jumped $35.571 on the week to finish at $235, while TCE earnings grew as well to $141,859. Houston-Flushing BLPG2 has fallen a little behind but still managed a $16.6 rise to close at $129.4 with TCE earnings for a round trip at $155,657.
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