Sunday, January 29, 2023
spot_img
HomeGasLNG tanker rates more than double in two weeks

Subscribe

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

LNG tanker rates more than double in two weeks

Tanker rates to ship liquefied natural gas (LNG) have more than doubled since the start of the month as a power crisis in Asia and Europe drives up demand for vessels, industry sources said on Tuesday.

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 $202,500 a day on Tuesday, the highest since Jan. 15, according to data from Spark Commodities.

For the same type of ship moving in the Atlantic basin, the rate hit its highest since late-January on Friday, but dipped to $138,250 a day on Tuesday, Spark data showed.

Both rates have more than doubled since the start of the month.

As LNG plants return from maintenance and supply is expected to grow in the near-term to meet increased demand for heating during winter, availability of ships has been tight, the sources said.

Currently, the price spread between Henry Hub futures and European and Asian gas prices is historically very wide, and traders anticipated the flow of U.S. export cargoes to increase in winter, which would also boost freight rates.

“There are very limited spot vessels so if there is a prompt vessel requirement for those lifting (free-on-board) then the potential cargo margin could mean the rates could go much higher,” said Tim Mendelssohn, chief executive at Spark.

Shipping rates across all routes are up this week and will likely break previous record high levels, a Singapore-based LNG trader said.

Congestion is expected at the Panama Canal, which ships use to transport LNG from the United States to Asia, while very few ships are available for spot charter this winter, said Oystein Kalleklev, chief executive of FLEX LNG Management.

“This is happening at a time when cargo prices are extremely firm, so willingness to pay for freight is thus very high,” he said, adding that freight prices are expected to go higher still over the next few months, although much depends on the weather.

“Normally (rates would peak in) second half December, but in case of cold winter which seems likely given La Nina alert, freight rates might stay elevated until early parts of February,” he said.

Restocking demand for LNG next year to replenish low inventory levels may keep freight rates buoyant past winter, he added.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Maritime UK: Net Zero Review published

On 13 January, the Department for Business, Energy and Industrial Strategy (BEIS) published the...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...