LNG freight rates surge

Spot charter rates for the global liquefied natural gas carrier fleet have doubled over the last two weeks, according to Spark Commodities.

Earlier this month, spot LNG freight rates rose over $100,000/day in both Atlantic and Pacific for the first time since December 2021.

Now the rates surged “above $200k/day in both basins as winter approaches,” Spark said on Monday.

LNG freight rate for a 160,000-cbm TFDE carrier reached $210,500 a day in the Atlantic on Monday.

Compared to the previous week, Spark30S Atlantic spot LNG freight rate jumped by $44,25O.

On the other side, the Pacific rate also rose to $213,050 per day on Monday, up by $7,250 from the last week, according to Spark.

Spark also said that positioning fees are now being included in negotiations and fixtures, driving up the round-trip rates.

LNG freight rates surge
Image: Spark

Prior to these increases, charter rates dropped considerably in June due to the shutdown at the Freeport LNG facility in Texas.

Last month, Freeport LNG delayed the restart of its 15 mtpa LNG export plant in Texas to November following an incident at the facility that took place on June 8.

This facility and other US LNG terminals have sent most of their volumes to Europe this year due to high gas prices and as European countries look to slash reliance on Russian pipeline gas.

European demand also pushed Asian spot LNG prices to record highs.

The JKM LNG price fell in the last couple of weeks but it remains very high. It was assessed on September 23 at $38.21/MMBtu, up by 45 percent compared with a year ago, according to Platts.

Most Popular

Hanwha Ocean scores $1.26 billion order for LNG-powered containerships

Hanwha Ocean said on Thursday it will build six containerships with a capacity of 15,000 teu. The order is worth...

Chevron Australia says strike not expected to impact LNG production

The Offshore Alliance, which includes the Maritime Union of Australia and Australian Workers’ Union, said that its members working...

Vopak, Transnet moving forward with South African LNG terminal plans

In January, South Africa’s Transnet National Ports Authority appointed the two firms to build and operate the import facility at the...

More News Like This

LNG shipping rates continue to decline, European prices rise

Last week, LNG shipping rates also declined. “Spark30S Atlantic rates dropped for a second consecutive week, reducing by $6,250 to...

LNG shipping rates decline, European prices up

Last week, Atlantic rates rose for the first time in six weeks. “Spark30S Atlantic rates dropped by $2,000 to $57,750...

China was top destination for US LNG shipments in July

The DOE report shows that US terminals shipped 33.4 Bcf of LNG to China in July, 28.3 Bcf to...

GECF: global LNG imports slightly down in August

In August 2024, global LNG imports recorded a decline of 0.3 percent (0.11 Mt) to 33.49Mt, Doha-based GECF said...