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.
This is around three times the charter rates we have seen a year ago at the beginning of the heating season.
Europe’s insatiable thirst for LNG is the key driving force behind the rapidly tightening shipping fundamentals.
A colder than average winter in northeast Asia, considering the La Niña forecast, could add further pressure on LNG spot charter rates…
And this highlights very well the infrastructure and flexibility constraints which have been unveiled by the current gas&energy crisis… the supply flexibility of the global gas system has been exhausted this year, which means that demand flexibility will be key in the upcoming heating season…
What is your view? How will the LNG shipping market play out this winter? Is there a limit for charter rates?
Source: Greg MOLNAR