The Baltic Exchange: Gas report - Week 42


The Baltic Exchange: Gas report - Week 42


A subdued LNG spot freight market has kept rates relatively flat. Consensus among market players only exists in that there isn’t much driving force up or down otherwise there are contrasting opinions of where the market should go. With few spot enquiries any change has been driven by some tenders offered up in the Atlantic ex Bonny for end November and mid-December and Middle East from Oman for start November while in Asia there has been few enquires made. LNG pricing fluctuations has diminished the tonnage list while portfolio players have removed relets from circulation to cover internal movements.

Rates themselves haven’t done much with BLNG1g Aus-Japan losing only $4,916 to close at $124,592 while the Atlantic runs BLNG2g USG-Cont finished at $127,679 and USG-Japan BLNG3g moved $135 down only to finish at $158,920. Period has calmed, with rates steady with a one-year timecharter on a 174cbm2 stroke at $108,467.


The market has been up and down this week losing nearly $20 off the start of the week by the midpoint but the index rose again to close at $112.857 (an actual fall of $1.143 on the week) giving a daily TCE of $95,990. With the fixing window now looking out to the last decade of November, the earlier and more ‘affordable’ ships already fixed away has helped bolster rates and by the tail end of the week we had a rise of over $16 in one day.

The US market has suffered heavier casualties with both BLPG2 and BLPG losing quite a chunk of their value. Houston-Flushing BLPG2 lost $13.4 to finish at $101.8 meaning a daily TCE earning on a round voyage was $114,968. While Houston-Chiba lost $24.143 giving a closing index value of $185.857 and a daily TCE earning of $102.628. With delays in Panama causing headaches for charterers we have seen an increase of freight rates with options to go via the Cape rather than via the canal. Overall enquiry has been down and all three routes have corrected with brokers estimations they should remain flat.

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