global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
Global LNG Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Global LNG Hub
No Result
View All Result
Home LNG Contracts & Pricing

LNG charter rates collapse due to capacity overhang

Editor by Editor
7 months ago
Reading Time: 2 mins read
LNG-charter-rates
Share on FacebookShare on TwitterShare on Linkedin

Spot LNG charter rates in the Atlantic plummeted by near 70% since mid-July, dropping to below $30k/d last week, with some vessels being chartered at below $20k/d, a historic seasonal low.

RELATED POSTS

LNG-prices

Review of natural gas and LNG prices

6 days ago
benchmark-gas-prices

Natural gas prices down significantly across all key markets in April

2 weeks ago
LNG prices

Review of natural gas and LNG prices

2 weeks ago

Spot LNG charter rates typically display a strong seasonal profile, similarly to gas and LNG prices, they tend to rise with the arrival of the heating season, reflecting higher gas demand and consequently stronger shipping requirements.

Charter rates hit an all-time during the 2022/23 winter, with some vessels being chartered at over $400k/d, during the most difficult days of the gas crisis. the market moved towards a gradual rebalancing since then and charter rates smoothened over 2023 summer.

The current downfall for LNG charter rates started from mid-July 2024 and reflects a temporary oversupply in LNG carrier capacity: while LNG supply grew at a mere 2%, the LNG carrier fleet expanded by around 8% compared to last year.

In addition, weak demand fundamentals in
Europe (LNG imports down by 20% yoy) weighed further on LNG charter rates in the Atlantic. spot charter rates now dropped to below $30k/d -just one-fifth of their 5y average for this period of the year.

Low spot LNG charter rates are expected to have a number of effects, including:

(1) Tighter JKM-TTF spreads: lower shipping costs will naturally weigh on the JKM-TTF price spread, which already shrunk from $1.5/mmbtu in Q3 to around $0.5/mmbtu these days;

(2) Floating storage: low charter rates could incentivise more floating storage to capture inter-month price spreads. floating storage volumes rose by near 10% since end of Sep;

(3) Lower costs of LNG supply: depressed charter rates are naturally reducing the cost of LNG supply, although this would not necessarily translate into lower gas or LNG prices, but rather improve the margin rates of traders with greater exposure to spot shipments.

And while the short-term outlook is bearish, these low charter rates are not expected to last long. the next LNG mega-wave through the second half of the decade (over 270 bcm/y capacity additions), will naturally provide upward support to spot LNG charter rates both in the Atlantic and Pacific basins.

Source: Greg Molnar


RELATED POSTS

LNG-prices

Review of natural gas and LNG prices

6 days ago
benchmark-gas-prices

Natural gas prices down significantly across all key markets in April

2 weeks ago
LNG prices

Review of natural gas and LNG prices

2 weeks ago
Tags: Greg MolnarLNG charter ratesLNG shippingLNG trade
Editor

Editor

Related Posts

LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

6 days ago
benchmark-gas-prices
LNG Contracts & Pricing

Natural gas prices down significantly across all key markets in April

2 weeks ago
LNG prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

2 weeks ago
LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

3 weeks ago
Chinas-gas-consumption
LNG Contracts & Pricing

China’s role in the global LNG market may become less dominant

3 weeks ago
LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

4 weeks ago
No Result
View All Result

Trending Posts

benchmark-gas-prices

Natural gas prices down significantly across all key markets in April

May 1, 2025
LNG-exports

Russia aiming to increase LNG exports by 100bcm by 2030

April 22, 2025
LNG-prices

Review of natural gas and LNG prices

April 16, 2025

Recent Post

LNG-prices

Review of natural gas and LNG prices

May 7, 2025
benchmark-gas-prices

Natural gas prices down significantly across all key markets in April

May 1, 2025
LNG prices

Review of natural gas and LNG prices

April 30, 2025
LNG-prices

Review of natural gas and LNG prices

April 23, 2025
Chinas-gas-consumption

China’s role in the global LNG market may become less dominant

April 23, 2025
LNG-exports

Russia aiming to increase LNG exports by 100bcm by 2030

April 22, 2025
LNG-HUB-Logo

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Review of natural gas and LNG prices

Natural gas prices down significantly across all key markets in April

Review of natural gas and LNG prices

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.