According to the Baltic Exchange’s Weekly Market Roundups published on February 24, 2023:
LNG
The BLNG1g route rose slightly and is beginning to shift away from the flat market we have seen of late. Enquiry on the spot continues to increase. And although cargoes are looking for vessels available open prompt, there is a slight disconnect between owners and charterers ideas. The Australia-Japan run finished at $75,702 rising over $6000 and holding its own against the US routes, which are falling a little behind.
For the US runs, both BLNG2g and BLNG3g increased with the continued opening of Freeport. The prospect of further cargoes in the mix could open up the ARB and overtake the BLNG1g levels. However, at the moment there’s still a discount vs the East with BLNG1g closing at $56,597 and BLNG3g $68,675.
Period discussions continue to focus on sublet tonnage. There is less demand vs the spot, but rates are still increasing on one and three-year terms. Current estimations for a 174k 2-Stroke vessel with 0.085% boil off and delivery one month ahead: $183,000 for 12 months, and $167,00 for three years.
LPG
Rates rose this week over $7.5 on the back of a spate of fixing and a strong uptick in the US market, which has attracted ships away from the AG. This activity, coupled with uncertain itineraries, has created a tighter position list and pushed sentiment higher. Rates for a Ras Tanura-Chiba BLPG1 run rose to end at $102.714. This is the first time we have seen the route back into triple digits since the end of December 2022.
The US market took off, rising over $22 on a Houston-Chiba BLPG3 route to close at $159.571 (having briefly touched $160 mid-week). This pushed TCE earnings up for owners to $85,698 daily return on a round voyage. A vessel fixed for mid-April dates was done so at $159 Houston-Chiba. And with enquiry still looking for later in the month there are expectations that this premium over the AG should remain. With less fixed on BLPG2 Houston-Flushing, rates rose slightly less, but still quite a healthy amount, to close at $91.2 (a rise of just over $14 on the week). This gave a TCE daily return on a round voyage of $102,918.
