SINGAPORE: Shipping rates for liquefied natural gas have hit multi-month highs on tighter vessel availability, delayed cargo deliveries to Egypt and rising demand ahead of winter, shipping sources said.
The price gains amplify competition for available LNG carriers, reversing the trend of lacklustre shipping rates seen for much of this year.
Prices tumbled to five-year lows in February as fleet additions outpaced demand, though they jumped to an eight-month top in June on tighter vessel supply and as the Israel-Iran conflict led shipowners to hold off chartering vessels.
Atlantic freight rates assessed for vessels with two-stroke engines capable of carrying 174,000 cubic meters of LNG — the most common type in the market — were at $61,500 per day on Tuesday, coming off Monday's price of $61,750 per day, according to pricing agency Spark Commodities.
That was their highest since late August 2024 and a more than 50% jump from $39,750 per day last Monday.
Pacific rates for the same class of ship were at $42,250 per day on Tuesday, up from $31,250 last Tuesday and the highest since end-June, the data showed.
"Recent delays to discharge of LNG cargoes into Egypt have been one contributory factor, with knock-on impacts for vessel itineraries", said Stephen Gordon, managing director at Clarksons Research. — Reuters
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