Spark assessed Pacific-based rates at $202,500 daily, a $64,250 premium over Atlantic rates at $138,250 per day Please enter your username or email address to reset your password. This website uses cookies to improve your experience while you navigate through the website. This website uses cookies to improve your experience while you navigate through the website. Soaring demand for LNG and buyers shunning Russian cargoes and vessels over its invasion of Ukraine have led to more long-term charters, limiting the supply of vessels to the spot market, said shipbroker and LNG consultancy Poten & Partners. googletag.pubads().collapseEmptyDivs(); Spot earnings have reached dizzying heights, Clarksons Securities analyst Frode Mrkedal wrote. In bulk commodity shipping which has far more experience with rate spikes caused by supply-demand imbalances there is no such pushback. 8. window.googletag = window.googletag || {cmd: []}; Global LNG shipping - orders and deliveries - Wood Mac But opting out of some of these cookies may affect your browsing experience. googletag.cmd.push(function() { One-year rate signals optimism into next year The benchmark one-year charter rate for LNG carriers jumped 74% to $82,000 a day since the start of 2021, according to Fearnleys, which is the. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Dont miss the hottest freight event of the summer! window.googletag = window.googletag || {cmd: []}; Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction. Thats around 30 times as high as rates during some years pre-COVID. High Asian spot LNG prices of around USD 30/MMBTU created a wide price spread of USD 23/MMBTU between UK NBP and JKM prices (the Atlantic and Asian LNG price benchmark) and attracted Atlantic Basin volumes. Markets Wave of U.S. LNG Ships Headed to Europe Sends Freight Rates Below Zero Spot charter rate in the Atlantic falls to -$750/day: Spark Diversions from Asia means too many LNG. A Q-Flex vessel Al Sheehaniya, carrying super-chilled LNG from Qatargas (file picture). We would be happy to offer you more information about our paid services. Start Trading CFDs Over 2,200 Different Instruments, Azerbaijan is strengthening its strategic. He put one-year time-charter rates for MEGI LNG vessels at around $170,000 per day, three-year rates at around $140,000 and five-year rates at $110,000. According to Clarksons Platou Securities, spot rates for tri-fuel, diesel-electric (TFDE) propulsion LNG carriers are now averaging $112,500 per day, up 105% month-on-month. In LNG trading, its all about the arbitrage. He currently resides in Manhattan with his wife and two Shih Tzus. Exclusive news, data and analytics for financial market professionals, Reporting by Gary McWilliams; Editng by Mark Porter, As oil output peaks, US Gulf of Mexico makes room for carbon capture, Oil drops 1% as economic growth concerns offset OPEC+ cuts, U.S. April oil exports top forecasts on Chinese demand, Enbridge acquires gas storage facility in British Columbia for $295 million, IMF's Georgieva says more vulnerabilities in banking sector may be exposed, FDIC sees merits of increasing backstop for business accounts, Exclusive: Kleiner Perkins partner Wen Hsieh to launch TSMC-backed new fund -sources. Day rates bottomed in March and have been very strong since May. "to replace Russian pipeline flows with liquefied natural gas from suppliers including in the US and Nigeria. " googletag.pubads().collapseEmptyDivs(); Asian Spot LNG Price Starts to Firm as Winter Nears. Report shows costs 5 times as much using LH2 ships compared to LNG. European demand surged last winter even before Russia invaded Ukraine. GasLog Partners LP (GLOP) Q1 2023 Earnings Call Transcript To receive our key LNG freight rates every week, sign up for the free prices and insights newsletter. By ZeroHedge - Oct 04, 2022, 11:00 AM CDT LNG carrier charter rates are soaring as the energy crisis sparks a ship shortage. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. gptAdSlots.push(gptSlot); }); The average spot rate for modern LNG carriers topped $250,000 per day in Q4 2021. Flex LNGs business has followed the same multiyear-charter-centric script as the market as a whole. LNG shipping rates forecast to be lower in 2022 than 2021, Poten says You also have the option to opt-out of these cookies. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Skip to content. First, given the high cost and exceptionally long delivery times for newbuilds, a company in need of shipping capacity may favor a long-term charter of an existing ship. googletag.pubads().enableSingleRequest(); gptAdSlots.push(gptSlot); It has since jumped to $248 million. LNG spot charter rates more than tripled since the start of September, to hit over $300,000/day in the Atlantic basin and over $250,000 in the Pacific. Copyright 2023, All Rights Reserved, FreightWaves, Inc, LNG shipping rates shooting for the stars at $500,000 per day, Loaded & Rolling (Enterprise Fleet News/Analysis), can make $200 million in profits moving a single shipload of LNG, Rates have gone into the $300,000s per day, It sparked an outcry among containerized cargo shippers. Flex LNG is now largely in harvesting mode, paying out dividends, including a special dividend announced Wednesday. Qatar delivered 22 more cargoes in the first quarter of this year compared to the same period last year, the Gas Exporting Countries Forum (GECF) said in its April report. High Asian spot LNG prices of around USD 30/MMBTU created a wide price spread of USD 23/MMBTU between UK NBP and JKM prices (the Atlantic and Asian LNG price benchmark) and attracted Atlantic Basin volumes. What is your view? The US, Australia, and Qatar lead the number of LNG shipments in 2023 thus far, Doha-headquartered GECF noted. Benchmark tri-fuel, diesel engine (TFDE) carrier rates were assessed at $276,700 per day. The total number of LNG shipments for the first three months of 2023 reached 1598, which is 3% (or 50 more cargoes) than during the same period in 2022. About half of the new-build orders for commercial vessels are for ships equipped with dual fuel engines - either LNG or methanol - with oil, he added. Shell booked an LNG carrier for $400k per day, likely the most expensive ever for the Atlantic basin. Qatar records 22 more LNG cargoes in first quarter than Q1, 2022: GECF Sign in to get the best natural gas news and data. Necessary cookies are absolutely essential for the website to function properly. In a recent article for FreightWaves, he notes that "Spot rates for very large crude carriers (VLCCs) - tankers that carry 2 million barrels of oil - just breached the $100,000-per-day . Greg Miller covers maritime for FreightWaves and American Shipper. Our Standards: The Thomson Reuters Trust Principles. googletag.enableServices(); Your email address will not be published. Paying a million a day may sound crazy. googletag.cmd.push(function() { googletag.pubads().enableSingleRequest(); window.googletag = window.googletag || {cmd: []}; "We've seen some 10-year charters that we hadn't seen for many years previous," he said, declining to name the long-term charterers. Follow the topics you want and receive the daily emails. The switch to more U.S.-Europe voyages at the expense of U.S-Asia voyages reduced average sailing distance by 15% in Q1 2022 versus Q4 2021, which released a lot of available ships in the market and pushed spot rates back down from winter highs, he explained. Spark Commodities dropped its spot rate assessment for a tri-fuel diesel-electric vessel trading in the Atlantic region by $8,750 per day . Asian Spot LNG Price Starts to Firm as Winter Nears googletag.pubads().enableSingleRequest(); Both prices are up substantially compared to the average for the year, with year-date average for Asia of $49,000 per day. This has been driven by higher material prices for nickel and steel as well as higher labor prices and a much tighter balance at the yards because of the glut of orders, not just for LNG carriers but also for container ships., An LNG carrier ordered today wont even be delivered until 2027, he said. Notice: By accessing this site you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices, graphs or news content) in any form or for any purpose whatsoever without the prior written consent of the publisher. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. See here for a complete list of exchanges and delays. if(window.innerWidth<=1023){var write_html='