Last week, the shipping markets for both LNG and LPG witnessed a notable decline, with rates dropping across most routes. In the LNG sector, the BLNG1 route from Gladstone to Tokyo saw a slight increase for 174k cbm vessels, gaining $400 to reach $27,900 per day. However, the rates for 160k cbm vessels experienced a decrease of $600, settling at $17,800 per day.
In the Atlantic region, the BLNG2 Sabine to UK Continent route registered a drop of $2,500 for 174k cbm vessels, bringing the rate down to $28,000 per day. Similarly, 160k cbm vessels saw a decline of $1,200 to $14,000 per day. On the BLNG3 Sabine to Tokyo route, 174k cbm vessels reported a reduction of $1,700, resulting in a rate of $31,400 per day, while 160k cbm vessels fell by $800 to $15,800 per day.
Despite this overall decrease in spot rates, the period market showed some signs of life, with six-month charters rising by $100 to $28,600 per day and one-year rates jumping $3,750 to $33,750 per day. Rates for three-year charters remained stable at $53,500 per day. In the LPG market, a downward correction was apparent as rates declined across all routes, reversing the gains made in the previous week.
For the BLPG1 Ras Tanura to Chiba route, rates fell by $4.58 to $57.58, and the TCE earnings decreased by $5,467 to $40,626 per day, reflecting weaker sentiment in the Middle East due to increased vessel availability and diminishing volumes. The BLPG2 Houston to Flushing route also showed a softening trend, with rates dropping by $2.00 to close at $54.00 and a corresponding decline in TCE earnings of $3,254, settling at $52,012 per day. Meanwhile, the BLPG3 Houston to Chiba route experienced the most significant decline, with rates falling by $5.83 to $103.67 and TCE earnings dropping by $4,978 to $37,447 per day, indicating a cooling long-haul market and reduced arbitrage opportunities.