Sunday, May 28, 2023
HomeGasLNG shipping rates climb to multi-month highs


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

LNG shipping rates climb to multi-month highs

Freight rates to ship liquefied natural gas (LNG) rose to multi-month highs this week as a surge in demand for the super-chlled fuel has increased the need for vessels to move supplies, multiple trade and shipping sources said.

The daily charter rate for a tri-fuel diesel-electric (TFDE) vessel that can carry 160,000 cubic metres of LNG to Pacific basin ports rose to $76,000 a day on Tuesday, the highest since February, according to data from Spark Commodities.

For the same type of ship moving in the Atlantic Basin, the rate rose to $67,750 a day, the highest since August, Spark data showed.

European and Asian LNG-AS natural gas benchmarks have surged to record highs and U.S. prices have climbed to a 12-year high as demand for the fuel has increased amid low inventories.

“Record cargo prices and increasing potential of a widening spread between European and Asian gas prices is creating increased demand for freight,” said Tim Mendelssohn, chief executive at Spark.

“With limited spot vessels available, spot LNG freight prices are starting to rise fast,” he said, adding that Atlantic forward freight rates for December are currently estimated at $136,000 a day.

In early October last year, freight rates were similar to current levels but rose to $122,000 a day by the end of the month and to over $250,000 by mid-January.

A typical spot LNG cargo of 3.4 trillion British thermal units delivered into North Asia in November is currently worth about $135 million and any rise in shipping costs will further drive up cargo costs.

At least one firm is offering charter rates for steam turbine LNG carriers at rates of above $100,000 a day, said a shipping source. Steam turbine carriers are the oldest and least efficient in the fleet, and typically hold big discounts to TFDE tankers.

However, shipping availability was not a major concern at this time as several firms have pre-booked vessels for a one-year period in anticipation of the surge in prices, said three LNG traders.

Those vessels were likely secured at rates of about $30,000 a day for the contract duration, which could be boosting margins for these charterers, said a second shipping source.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...