LNG: LNG Freight Rates Hit Historic Lows: Platts

LNG freight rates hit historic lows in the week ending Jan. 23 in both the Atlantic and Pacific Basins due to a glut of available ships and limited cargo, Platts said.

• Tri-fuel diesel electric (TFDE) carrier rates dropped more sharply than two-stroke carriers, as buyers opted for cheaper two-strokes.
• Platts assessed Atlantic TFDE rates at $6,500/day and Asia Pacific at $8,000/day, both with significant ballast bonuses, marking substantial weekly declines.
• Two-stroke carrier rates also decreased, with Platts assessing Atlantic rates at $10,000/day and Asia Pacific at $15,000/day.
• Market oversupply and lack of uncontracted cargo exacerbated the rate drops.
• Since mid-October 2024, the preference for TFDEs over two-strokes has diminished.
• Factors such as newbuilds entering the market, no arbitration, no contango, and low demand from China and Japan contributed to the struggling market, traders told Platts.
• Weaker Far East demand further worsened the oversupply issue, according to sources.