LNG freight rates drop below $300,000 per day

Spot charter rates for the global LNG carrier fleet are continuing to decline in both basins and now they are below $300,000 per day.

In October, both the Atlantic and Pacific rates for 160,000-cbm TFDE carriers climbed above $400,000/day, with the Atlantic rate reaching more than $480,000/day.

However, the rates began sliding some two weeks ago and continued the trend this week as well.

“Export project delays, lower cargo demand and increasing prompt vessel availability is causing a fast drop from record highs,” Spark Commodities said on Wednesday.

“Spark30 Atlantic is down $176,750 per day and Spark25 Pacific is down $172,500 per day over the last two weeks,” the Singapore-based firm said.

The Atlantic spot LNG freight rate reached $299,750 per day on Wednesday while the Pacific rate reached $283,250 per day, Spark’s data shows.

Spark previously said that the ongoing Freeport restart delays was one of the main reasons for the drop in rates.

Earlier this month, the operator of the 15 mtpa Freeport LNG export terminal on Quintana Island again delayed the restart of the facility in Texas.

Freeport LNG is now targeting initial production at the facility in mid-December.

Prior to the shutdown on June 8, most of the cargoes produced at the plant this year landed in Europe.

This is the case with other US LNG terminals as well as European countries import record volumes of LNG in order to replace Russian gas pipeline supplies.

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