Since at least 2013, the cost of chartering an LNG vessel on the short-term market has jumped the most. As the heating season begins to boost demand, issues related to US sanctions on units of China’s COSCO Shipping Corp. start to hit.
The day rate jumped 57 percent for a standard tanker East of the Suez Canal.
How US sanctions on units of China’s COSCO are impacting global trade flows shown by the skyrocketing rates. At high-level trade negotiations in Washington, the sanctions on the shipper will be asked by China to be lifted.
On October 9, benchmark LNG spot shipping rates east of the Suez Canal rose to US$130,000 a day. Because the vessels are owned by a unit of COSCO, Woodside Petroleum Ltd in Australia wouldn’t load two tankers that were meant to deliver cargoes for CNOOC.
COSCO-owned vessels meant for CNOOC also wouldn’t be loaded by the Bintulu project in Malaysia and Tangguh in Indonesia. Two COSCO vessels used by CNOOC to transport gas from Tangguh and one from Bintulu.
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