According to the Baltic Exchange’s Weekly Market Roundups published on March 24, 2023:
LNG
A continued quiet market on the spot has moved rates down on all three routes once again. While the Pacific market still holds a premium over the west, it is mainly to do with tighter tonnage rather than increased demand. Charterers have held off enquiry (what little is there) and more sublet tonnage has been marketed. However, with little period enquiry as well, on terms shorter than a year. There hasn’t been much to change or focus on with the shipping side this week. More news is coming out that as LNG storage and supply remains high, usage has decreased. This has subsequently had a downward pressure on charter rates. Rates for BLNG1g closed at $68,515 - a fall of a little over $5,000 this week - while BLNG2g and BLG3g also fell to close at $46,834 and $55,740 respectively. US exports of LNG are increasing again with a reported 27 LNG carriers departing US plants over the last week. This is an increase of five from the week before. Perhaps the Pacific basins premium has begun to weaken and an increased demand for spot US liftings will have a positive impact on the rates which have been lacklustre of late. Rates for term changed little with our current estimations for a 174,000 2-Stroke vessel with 0.085% boil off and delivery one month ahead: $183,250 for 12 months, and $150,250 for 3-Years.
LPG
With a holiday in Japan and another LPG conference in the East, the BLPG1 market was continuing its quiet spell. There were fixtures taking place. But with the window moving further out again into mid-April, rates have taken a slight hit. Rates for a Ras Tanura-Chiba fell by over $4 this week from a high of $93.857 to $89.429, taking around $5,000 off TCE earnings which fell to $74,455 for a round voyage. With more market participants back next week there is the opportunity for rates to rise back again over the $90 threshold and sentiment would support some sort of rise.
Out in the west, it was an even more sombre story as rates fell for both BLPG2 and BLPG3 with very little activity and few cargoes reported. As ever, the Panama Canal remains in many market players minds with delays still causing issue to tonnage. The list is remaining tight, but there isn’t enough enquiry to stave off any falls on freight. BLPG2 closed at $79.6, down from $82, while BLPG3 Houston-Chiba saw a greater fall from highs of $145.143 to close below $140 at $139.357.
