The Baltic Exchange: Gas report - Week 49

• By The Baltic Exchange - Media Source
• Dec 13, 2023

The Baltic Exchange: Gas report - Week 49

LNG

BLNG1g Australia-Japan again fell this week shedding $29,023 to close at $113,975. This level has been seen a few times in the last year but we haven’t been lower since mid-August and prior to that January. The fall came despite a fair amount of activity in the East, a few ships fixed ex-Aus one 2-stroke in the region of $140,000/day, while a TFDE was fixed closer to $100,000. Other bits of enquiry has kept the market talking and, though rates have been hit, there is life that most brokers have agreed is a good sign.

The US export market has been hit with continued issues with the Panama Canal making Asian LNG prices more tempting than in the Atlantic, and Christmas, which is also in full force for those returning from the conference in Athens last week. With many brokers and market players out in droves celebrating the festive period, it has kept market activity down. BLNG2g Houston-CONT lost $18,921 to finish at $141,328 while BLNG3g Houston-Japan fell to a close of $145,141. The LNG period assessment fell again week-on-week to $85,000 for six months, $96,900 for one year, and $104,200 for three-year-term deals.

LPG

A quiet week for the BLPG1 Ras Tanura-Chiba route, the index fell by $23 to close at $125.286. The significant drop comes mainly from the lack of activity, with few enquiries and ships failing subjects with cargoes being taken back internally, it has resulted in rates significantly weakened compared to a few weeks ago. There isn’t much left of 2023 but optimism hasn’t quite died out yet with brokers feeling there could be some life before we celebrate the New Year.

With the continued essential closure (and no sign of it being let up) for ships to route via the Panama Canal, ships are almost exclusively going via the Suez. This has hit rates quite a lot, with a drop of $22.857 pushing the index below $200 for the first time since the end of October. Publishing at $198.286 for BLPG3 Houston-Chiba, we have a daily TCE earning of $115,935. BLPG2 Houston-Flushing suffered a similar blow but losing the least of the three routes at $13.6 as we closed at $109.8 and a daily TCE earning of $130,681.

• Tags
• # Maritime Transport