LNG

The LNG market remained under pressure this week, despite a number of cross-basin requirements emerging from both the US Gulf and West Africa.

With the fixing window moving into November and early December, vessel availability continues to outweigh cargo demand, limiting the usual seasonal uplift in freight rates around this time.

On the BLNG1 Australia–Japan route, rates declined by $2,700 week-on-week to settle at $27,600/day. The Pacific market remains competitive among owners, with a large number of vessels offering on a relatively limited number of cargoes.

The BLNG2 US Gulf–Continent route declined by $200 to close at $21,200/day. Despite increased cross-basin enquiry, ample vessel availability and charterers seeking East or West flexibility kept rates relatively flat.

Similarly, the BLNG3 US Gulf–Japan route fell $800 week-on-week to settle at $49,000/day. Long-haul requirements remained present, although the absence of a sustained Eastbound arbitrage and continued competition between vessels limited support for rates.

In the time charter market, sentiment softened across all periods. The six-month rate fell by $3,800 to $42,500/day, while the one-year term declined by $933 to $51,100/day. Further out the curve, the three-year period edged lower by $50 to $69,900/day.

LPG

The LPG market cooled slightly this week following the strong gains seen the previous week, as the arbitrage narrowed and reduced further upward gains. Despite this, sentiment remains firm with the tonnage list continuing to look tight, helping to limit downside pressure on freight rates.

On the BLPG1 Ras Tanura–Chiba route, rates settled at $263.20/tonne, with TCE earnings closing at $255,539/day.

The BLPG2 Houston–Flushing route declined by $7.50 week-on-week to settle at $182.33/tonne, with TCE earnings falling by $12,085 to $213,443/day. The route softened as the arbitrage narrowed, although limited vessel availability continued to provide support.

Similarly, the BLPG3 Houston–Chiba route fell $9.14 to close at $333.43/tonne, while TCE returns decreased by $7,695 to $204,369/day. The route eased from the elevated levels seen last week, but sentiment still remains firm.