LNG

There had been hopes that after many positive discussions at GasTech in Houston the market would come back refreshed, ready to fix and shake off the cobwebs from the summer.

However, the spot LNG market has been very much like the British weather - a total washout. End week requirements have not done anything to stoke the fires, and BLNG1 Aus-Japan published down quite aggressively with brokers amending not only their expectation on rates but downgrading ideas on BB as well.

BLNG1 Aus-Japan on the 160cbm TFDE fell by $8,900 to $48,300 one of the lowest rates seen in a while, and though the 174cbm 2-stroke did better losing only $7,300 with a close of $65,100 the availability of cold on water ships is having an adverse effect on the rates. With BLNG2 Houston-Cont and BLNG3 Houston-Japan both fairing it better, it was not much of a fairytale for either. The 160cbm TFDE index fell by $3,900 while the 174cbm 2-stroke lost $3,100 closing at $42,600 and $56,400 respectively on BLNG2. BLNG3 felt similar losses moving down $4,900 and $3,238 on the 160cbm and 174cbm ships giving a final close of $58,000 on the TFDE and $76,199 on the 2-stroke ships.

Period has not seen much attention as would be expected going into the winter season, at least on the shorter multi month enquires but our 6-month assessment fell by $2,400 to $7,500 while both the 1-year and 3-year gained marginally to finish at 471,150 and $80,650 respectively.

LPG

Despite some uncertain days this week the LPG market has recovered some of the recent losses. Though it remains still very much under the cosh with position lists and product both showing signs of uncertainty. Rates for both regions gained and a few dollars driven by fixtures which perked up underlying sentiment.

BLPG1 Ras Tanura-Chiba began flat after a tough week but finished up by $2.334 to a close of $35.667 giving a TCE earning equivalent of $15,771 a rise of $1,829. Despite lagging against the US, market expectations are that as the West market improves the East shall be dragged up by its bootstraps.

In the Atlantic with more cargoes working and ships getting fixed away there was positive movement across both routes. BLPG3 Houston-Chiba rose by $8.333 despite suffering some split minds when two ships fixed nearly $10 apart earlier in the week, but with a close of $87.5 and a TCE earning of $26,206 it is commanding quite a premium against the MEG. BLPG2 Houston-Chiba rose off the back of BLPG3 and with a $5.25 gain to $46,75 it brought TCE earnings up to $40,832.