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 Trade

LNG Freight Rates Follow Surge in Exports

Editor by Editor
4 years ago
Reading Time: 2 mins read
LNG carrier rates
Share on FacebookShare on TwitterShare on Linkedin

The recent bonanza of exports enjoyed by LNG producers such as the US, fuelled by a demand crunch in Asia, has rippled through freight markets for LNG carriers.

RELATED POSTS

Chinas-gas-consumption

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

2 months ago
US-LNG

The embargo isn’t stopping the U.S. LNG train

2 months ago
global-LNG

How the global LNG market balanced in Q1 2025

2 months ago

Despite LNG cargo prices now gradually easing, we see LNG freight strength set to continue until at least end Q1 2021, amid European demand and ongoing congestion.

Availability in the Atlantic basin disappears, as utilisation surges

Colder-than-average winter weather conditions in Asia, coupled with relatively low storage volumes, boosted the price of spot cargoes for LNG. LNG freight rates followed suit, increasing two-fold to reach a record-high since assessments first began, according to Argus pricing data for the PADD 3 to Tokyo route via the Panama Canal.

Our freight data shows that vessel availability at Sabine Pass over the last 90 days, as well as utilisation on the PADD 3 to Asia route, experienced dramatic inverse swings to help boost voyage rates to record-highs.

Tonnage dwindles as cargo demand soars

Vessel availability of LNG carriers at Sabine Pass decreased 17% over the course of three weeks from December 14, 2020 to January, 7 2021, marking the fastest removal of tonnage observed by Vortexa over the last 90 days. Availability plummeted as record-low temperatures in North Asia led to a flurry of bookings towards the year-end, concurrently with an all-time high of US LNG exports in December of 2020.

As delays started appearing in the Panama Canal, a waypoint favoured by LNG cargoes heading to the Far East (or in this case, the westwards across the Pacific), utilisation shot up by 26% along the PADD 3 to Asia route over the same period over late December-early January. Tonnage was kept employed longer as ships were held in congestion or decided to transit through alternative waypoints such as the Cape of Good Hope, further boosting freight rates.

Looking ahead

Future prices are already starting to soften for March contracts, which could ease the current levels of freight rates. But with demand from Europe now set to increase to refill storage in Baltic and North West European countries and ongoing congestion, ships remain scarce and we predict elevated freight rates until at least the end of Q1 2021, even as cargo prices ease.

Source: Vortexa

Follow on Twitter:

[tfws username=”Vortexa” height=”700″ width=”350″ theme=”light” color=”#FAB81E” tweets=”2″ header=”yes” footer=”yes” borders=”yes” scrollbar=”yes” background=”yes”]

Tags: Arthur RichierLNG cargoesLNG carriersLNG charter ratesLNG freightPanama CanalVortexa
Editor

Editor

Related Posts

Chinas-gas-consumption
LNG Contracts & Pricing

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

2 months ago
US-LNG
LNG Demand

The embargo isn’t stopping the U.S. LNG train

2 months ago
global-LNG
LNG Demand

How the global LNG market balanced in Q1 2025

2 months ago
LNG-imports
LNG Supply

Growing conflict over Qatar LNG shipments to Europe?

3 months ago
Natural-gas-prices
LNG Contracts & Pricing

Natural gas prices surged across all key markets in February with geopolitical tensions fuelling volatility

3 months ago
European-LNG-imports
LNG Contracts & Pricing

European LNG imports could surge by more than one-third this summer

3 months ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

LNG-prices

Review of natural gas and LNG prices

May 28, 2025
global-gas-market

Europe’s exposure to a wild and volatile global gas market

May 20, 2025
LNG-prices

Review of natural gas and LNG prices

May 14, 2025

Recent Post

LNG-sabine-pass

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

June 4, 2025
LNG-prices

Review of natural gas and LNG prices

June 4, 2025
feedgas-LNG

LNG feed gas dips; JERA deal propels Rio Grande train 5 toward FID

May 31, 2025
LNG-prices

Review of natural gas and LNG prices

May 28, 2025
global-gas-market

Europe’s exposure to a wild and volatile global gas market

May 20, 2025
LNG-prices

Review of natural gas and LNG prices

May 14, 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

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

Review of natural gas and LNG prices

LNG feed gas dips; JERA deal propels Rio Grande train 5 toward FID

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.