LNG
A quiet week again with one stand out fixture mid-week, which drove the downward direction of the index. Reports of a 2-Stroke being put on subs for February dates in the mid $50,000s saw the final publication of the week reach those levels for BLNG2.
This meant the TFDE 160cbm ships fell as well keeping their usual differential, one ever so slightly diminished with such light activity. Overall fixing from the East has been quiet, but some enquiry ex-Australia has given some life to an otherwise dull market.
Rates for the 2-Stroke 174cbm fell across all three routes, with BLNG1-174g closing at $59,853 – a fall of $9,388 – while the TFDE 160cbm BLNG1g dropped $5,755 to close at $41,796. Out in the Atlantic BLNG2 Houston-Continent closed at $52,816 for the 2-Stroke 174cbm, which was very near a reported fixture from Wednesday.
The 160 TFDE rate fell to a low of $39,539 on Houston-Continent. Meanwhile BLNG3 Houston-Japan finished better with the smallest fall of the three routes for the week; with a close of $62,549 on the 174cbm, and $48,408 for 160cbm ships there was still negative movement overall.
The period has continued its downward trajectory with some brokers warning of bigger drops to come. For 6-months the Baltic assessment fell by $6,700 to $60,800, 1-Year dropped to $86,900 and 3-Years published at $91,300.
LPG
Further falls on the LPG market this week meant we saw low levels not seen since 24th January 2023 and within this year alone we have seen BLPG1 lose $78.429 (57.857%) of its value a huge correction in such a short period. BLPG1 Ras Tanura-Chiba fell $24.714 to close at $57.857 giving a TCE of $37,877, a nearly 50% drop from the end of last week.
There aren’t many cargoes working currently while charterers await Aramco dates but once they do come to market with such quiet fixing over the last few weeks plentiful ships await to fulfil the order, so rates won’t be much bolstered.
The US market hasn’t fared much better, a total of $120.714 lost from 2nd January (54%) on BLPG3. This week alone a drop of $23.572 was shaved off to give a final publication of $102.857 and a daily TCE earning of $40,303. Continued issues of transit via the Panama Canal and now of course increased troubles in the Red Sea has given owners a fair bit of headache as they try to confirm cargoes. BLPG2 was very quiet overall with little to no fixtures, and a drop of $20 to give a close price of $60.4 and daily TCE of $59,053. Looking ahead, this movement doesn’t hold much hope of any significant rises in the coming week.
