According to the Baltic Exchange’s Weekly Market Roundups published on March 17, 2023,
LNG
The pacific basin remains healthy despite a slight drop in spot rates over the week. Enquiry remains, although the focus - as ever - remains on shorter period business. Up to one-year deals are being worked quite extensively and the spot rates remain flat. The route over the week shed just over $3000 to close at $73,803 for BLNG1g Aus-Japan. The tonnage list out east does look tighter. Those who have enquiry up until end April-early May are going to struggle with ships offering in. This will do little to stimmy rates, but similarly will keep rates from falling much further.
In the Atlantic the routes faced a slightly more bearish outlook, losing a little more than the BLNG1g - but only just. Tonnage in the US is much healthier and with an extended tonnage list versus little requirement there could be tough times ahead for the spot rates. However, it is hard to verify if rates can or will drop further. There currently aren’t enough fixtures to get a feeling from owners of what rates they would be willing to accept. Further exports from the restarted Freeport terminal have helped, but tonnage is for the most part set aside to cover program and contractual business. This has done little to change the available vessels. As we finish the week, BLNG2g US-UK closes at $53,697 - a fall of $3405 throughout the week. BLNG3g US-Japan finishes at $60,571, a fall of $5373. Period fell slightly but not through lack of interest. There are just more vessels able to work on shorter-term contracts at the moment and as a result period assessments have fallen ever so slightly. Our current estimations for a 174k 2-Stroke vessel with 0.085% boil off and delivery one month ahead: $187,000 for 12 months, and $151,500 for three years.
LPG
Ras Tanura-Chiba saw little movement this week with rates hovering around the close at $96.283 (which gives a TCE Equivalent of $83,097 per day round trip). The fixing window is already in the first decade of April, but tonnage up until this point remains relatively healthy. Sentiment is slightly muted with possible reductions of cargoes from a few major charterers. At the end of the week there was contrasting reports of ships fixed for both $90 and $107 on the same routes. But with some replacement issues reported this could be explained away as just cover. The market as a whole remains steady.
In the Atlantic, both BLPG2 and BLPG3 rose. But with fixing windows out as far as the last decade April rates are expected to remain flat. A charterer took a ship for both East and West options off 19-20 April at $149 and $84 slightly above final index rates. However, with the arb currently showing no signs of life expectations are that the routes will be reflected well with the index published rates. The week finished with a Houston-Flushing run at $81.8 (a rise of $1.4 over the week), while Houston-Chiba finished at $145.714 (a rise of $1.285 on the week).
