LNG

The LNG market showed some signs of recovery this week, with increased fixing activity absorbing some of the available tonnage across both basins.

Despite this, competition for cargoes remains high and charterers continue to hold negotiating leverage, limiting the extent of upward movement in spot rates.

On the BLNG1 Australia–Japan route, rates increased by $4,800 week-on-week to settle at $32,800/day. The Pacific market firmed gradually as vessel availability tightened slightly and several late November and early December requirements emerged.

The BLNG2 US Gulf–Continent route increased by $4,000 to close at $25,400/day. Increased fixing activity helped absorb some of the available Atlantic tonnage, although continued competition between owners kept the recovery in rates measured.

Similarly, the BLNG3 US Gulf–Japan route gained $10,300 week-on-week to settle at $58,900/day. Eastbound cargoes continue to command a premium, although limited arbitrage economics are restricting further upside.

In the time charter market, sentiment was mixed. The six-month rate fell by $1,800 to $40,700/day, while the one-year term increased by $700 to $51,800/day. Further out the curve, the three-year period rose by $600 to $70,500/day.

LPG

The LPG market softened this week as the arbitrage narrowed and the position list lengthened slightly. With more tonnage becoming available, charterers regained some negotiating leverage, although vessel supply remains broadly balanced and sentiment remains firm.

On the BLPG1 Ras Tanura–Chiba route, rates settled at $252.40/tonne, with TCE earnings closing at $242,380/day.

The BLPG2 Houston–Flushing route declined by $11.33 week-on-week to settle at $171.67/tonne, with TCE earnings falling by $17,332 to $197,244/day. The softer arbitrage and slight increase in vessel availability weighed on rates through the week.

Similarly, the BLPG3 Houston–Chiba route fell $29.14 to close at $305.71/tonne, while TCE returns decreased by $24,396 to $181,218/day. The route saw the larger correction as eastbound economics softened, and charterers gained some negotiating leverage.