The Baltic Exchange: Gas report - Week 48
The Baltic Exchange: Gas report - Week 48
LNG
It was another quiet week overall for LNG. A little flurry of activity in the Pacific basin didn’t do much to bolster rates, with one MEGI ship reported at $140,000 for January loading in the East, a downward correction could have been expected. With little cargo out there and charterers looking for modern tonnage, which is very thin on the ground the levels have remained somewhat stagnant.
For BLNG1g Aus-Japan a slight dip of $2,769 gave a final publication of $142,998, while the Atlantic routes fared slightly better. BLNG2g USG-Cont rose by $3,400 to finish at $160,249 while BLNG3g USG-Japan fell little to close at $166,371. Like in LPG the Panama Canal is causing issues on scheduling and availability but it hasn’t affected freight rates quite as much, at least not yet. Period is quiet there have been no reported term fixtures for six month up to 1-3 years as yet, although charterers are interested in seeing what opportunities could be available in the new year.
LPG
The AG market has lost $5.428 this week to close at $148.143 giving a daily TCE earning of $136,571. It’s been a tough one for the market. Activity has been muted but tonnage remains stronger with pretty much all ships that are finished in the East re-routing via the AG to make their way back to the US. The Panama Canal is still having quite an affect and with such availability of tonnage, rates have taken a hit.
The main thing hogging the headlines is the Panama Canal. Nothing new reported so far, but the market is reacting now with rates forming an almost two tier market. Panamax vs. Neo-Panamax transiting vessels have quite the disparity between rates, with reports for those ships transiting the canal (of which it is almost exclusively Panamax size) showing levels of over $300, while the Baltic Standard ships, and therefore the index, has fallen quite significantly to $223.571 (a fall of $15.572). What’s important to note is that brokers are reporting that ships fixing via the Suez Canal or via the Cape, though they avoid huge delays in Panama Canal transits are giving almost the same sort of TCE earnings to charterers by taking the longer route hence the correction down. The Baltic TCE was published at $133,821 for BLPG3. BLPG2 has been quiet with nothing reported fixed into Flushing. Rates themselves lost $8 over the week to finish at $126 and a daily TCE earning of $152,132.
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