LNG

The LNG freight market experienced a volatile but generally firmer week, supported by stronger LNG commodity prices, ongoing geopolitical uncertainty in the Middle East, and increased market activity.

Market sentiment improved as concerns over the Strait of Hormuz and low European gas storage levels boosted LNG price expectations, although this did not translate fully into physical shipping demand due to ample vessel availability.

Baltic LNG assessments strengthened significantly through the first half of the week before easing slightly on Thursday. BLNG1 (Australia-Japan) increased from $26,800/day at the start of the week to finish at $27,200/day. BLNG2 (US Gulf-Continent) climbed from $21,500/day to a peak of $26,900/day before ending the week at $23,900/day. BLNG3 (US Gulf-Japan) posted the strongest gains, rising from $40,400/day on Monday to $53,400/day by Friday.

Chartering activity was concentrated around Australian and Qalhat requirements in the Pacific, while US Gulf export opportunities dominated Atlantic basin enquiries. Winter cover interest remained evident, with some charterers opting to secure spot tonnage amid still-competitive freight levels. However, it was reported that plentiful vessel availability continued to limit upward momentum in rates.

In the period market, the six-month assessment declined to $45,600/day, while one-year and three-year rates remained broadly stable at $52,533/day and $72,350/day respectively.

LPG

The LPG market continued to strengthen this week, supported by strong arbitrage economics and exceptionally tight vessel availability. VLGC freight ex-US reached fresh highs, with several fixtures concluded above $300/mt HCvP and only a handful of vessels remain available for prompt October requirements.

On the BLPG1 Ras Tanura–Chiba route, rates settled at $242.00, with TCE earnings closing at $231,509/day.

The BLPG2 Houston–Flushing route increased by $15.50 week-on-week to settle at $171.83, with TCE earnings rising by $20,123 to $197,444/day. Tight vessel availability and continued cargo demand supported rates throughout the week.

Similarly, the BLPG3 Houston–Chiba route gained $32.71 to close at $320.71, while TCE returns increased by $23,524 to $193,696/day. The route saw the strongest increase, supported by strong eastbound economics and the limited number of available vessels for October loading.