Spot rates for transporting 160,000 cubic meters of LNG in the Atlantic Basin is $100,000 per day, and $85,000 per day for Asia, or the . Subscribe to Maritime Reporter Email News. Eighteen months ago, five-year rates were almost half that, in the mid-$60,000s per day. A U.S. cargo sold in Europe could bring a profit of $201 million. Spark Commodities dropped its spot rate assessment for a tri-fuel diesel-electric vessel trading in the Atlantic region by $8,750 per day . Effective April 1, 2023, the procurement component of the core sales rate will decrease 16.553 /therm to 43.120 /therm. By signing up, I agree to ourTOSandPrivacy Policy. window.googletag = window.googletag || {cmd: []}; googletag.pubads().enableSingleRequest(); googletag.cmd.push(function() { U.S. Natural Gas Prices Jump To Two-Week High, Large Crude Inventory Draw Jolts Oil Prices, The Brent Oil Benchmark Is About To Change Forever, The 10 Most Incredible Oil And Gas Discoveries Of All Time, Oil Discoveries Made Guyana The Worlds Fastest-Growing Economy. Spot ship rates have been dramatically impacted by energy supply chain disruption due to the Russian invasion of Ukraine. In addition, with the increase in LNG supply in the Pacific Basin and the expected slowdown in the Asian LNG price rally, the movement of LNG carriers from the Atlantic Basin to the Pacific Basin will likely start to slow, reducing the tonne-mile demand of LNG carriers and increasing vessel availability. There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions. googletag.pubads().collapseEmptyDivs(); If a shipper can make $200 million in profits moving a single shipload of LNG, it will pay six figures a day in freight. In December 2020, the average spot charter rate for steam turbine LNG carriers reached $90,000 per day, the record high for that month. the procurement rate is about 25.8% lower (58.143 /therm) than what it was effective April 2022. 74-89% of retail investor accounts lose money. This website uses cookies to improve your experience while you navigate through the website. The US, Australia, and Qatar lead the number of LNG shipments in 2023 thus far, Doha-headquartered GECF noted. By clicking Accept, you consent to the use of ALL the cookies. The Argus Round Voyage rates are for a standard, fungible vessel, offered cold for single-cargo fixtures beginning between five days after the date of assessment and the end of the following calendar month, with the following specifications: To participate in the Argus assessment process, please contact: LNG Daily Editor, Harry Homan, in London; or Asia LNG Editor, Camille Klass, in Singapore. googletag.pubads().enableSingleRequest(); Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Spot rates for transporting 160,000 cubic meters of LNG in the Atlantic Basin is $100,000 per day, and $85,000 per day for Asia, or the East-of-Suez, cargoes, said Poten's head of business intelligence Jason Feer. A Q-Flex vessel Al Sheehaniya, carrying super-chilled LNG from Qatargas (file picture). googletag.pubads().collapseEmptyDivs(); Every Wednesday! See here for a complete list of exchanges and delays. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. What is your view? Your email address will not be published. Is there a limit for charter rates? Parallel in container-ship leasing Rates then rebounded, with the most fuel-efficient models with MEGI or XDF propulsion back to $100,000 per day by May. Latest spot price assessments, market-moving news and comprehensive analysis daily for the global LNG markets, Monthly service providing intelligence on international LNG markets including news analysis and trade flow data, Comprehensive source of daily bunker prices for all key global markets, plus the latest market-moving news and data, Explore our other natural gas and LNG services, LNG freight laden day rate TFDE - east of Suez, LNG freight laden day rate TFDE - west of Suez, Dual-fuel diesel electric (DFDE) or tri-fuel diesel electric (TFDE), Ice-class carriers are excluded from the assessment. He then spent 15 years at the shipping magazine Fairplay in various senior roles, including managing editor. SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. They also said that without a plan to have safe truck parking with electric plugs and hourly pay and overtime truck driver turnover would remain high. Theres really no cap until the freight becomes really, really high., Scorpio Tankers (NYSE: STNG) President Robert Bugbee noted that his company fixed tankers on individual voyages this summer at over $100,000 per day and not one time have we had phone calls from the heads of BP or Shell ringing up and saying, What the hell are you doing screwing our guys over?. This audit included three IMO auditors and encompassed the flag, Find out how InfiniD high-quality biodiesel can help your marine fleet - starting today, Answering the Call of Digitization and Sustainability, Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week. September 23, 2022 . googletag.pubads().enableSingleRequest(); Weekly newsletter each Wednesday more info. googletag.pubads().enableSingleRequest(); Argus assesses LNG freight rates based on a survey of active market participants. But it all comes down to the profit a shipper can make on a cargo. Extraordinarily high day rates have been seen in multiple bulk commodity shipping markets through the years. This is close to $500 per barrel of oil equivalent, noted Oystein Kalleklev, CEO of shipowner Flex LNG (NYSE: FLNG), during a conference call on Wednesday. Argus produces information and services for global markets, which requires Argus to share your personal information with Argus group companies and service providers that are based both within and outside of the European Economic Area (EEA). "It (the Freeport LNG outage) should have had an impact. googletag.enableServices(); Learn more about our contributors. window.googletag = window.googletag || {cmd: []}; googletag.enableServices(); Argus Media may use the details submitted to send you information about related Argus products and services which may be of interest to your business. But the current market situation is unprecedented. googletag.pubads().collapseEmptyDivs(); Welcome to the stratosphere of LNG prices, commented Stifel analyst Ben Nolan on todays market conditions. London shipbroker gives April overview of the current charter challenges in LNG market. He then spent 15 years at the shipping magazine Fairplay in various senior roles, including managing editor. googletag.pubads().enableSingleRequest(); Global LNG liquefaction capacity is set to expand by over 36%. Spot LNG Vessel Rates - LNG Datafeed, LNG Insight. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); The leading economics blog online covering financial issues, geopolitics and trading. This category only includes cookies that ensures basic functionalities and security features of the website. Shell Plc booked the Yiannis to load a US cargo at the end of October for delivery to Europe at a rate equivalent to $. }); Of its 13 vessels, 12 are on fixed-rate, multiyear employment. Copyright 2023, All Rights Reserved, FreightWaves, Inc, LNG shipping rates shooting for the stars at $500,000 per day, Loaded & Rolling (Enterprise Fleet News/Analysis), can make $200 million in profits moving a single shipload of LNG, Rates have gone into the $300,000s per day, It sparked an outcry among containerized cargo shippers. GAIL India Ltd. also booked the LNG Schneeweisschen to load a cargo in early November from the US at about $. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Asian spot liquefied natural gas (LNG) prices remained at their 22-month lows on Friday, as demand in China, Japan and South Korea was muted, keeping buyers away from spot market and encouraging continuous flows to Europe. "We've seen some 10-year charters that we hadn't seen for many years previous," he said, declining to name the long-term charterers. Understand more about LNG freight rates and why Argus Round Voyage rates are the benchmark that the market needs. It sparked an outcry among containerized cargo shippers, leading to accusations that rates were unfair and represented price gouging.. The Indian firm GAIL also secured an LNG shipment for about $360k per day. Argus LNG freight rates are independent and robust, informed by a diverse and global set of information contributed by charterers, vessel owners, trading firms and brokers. googletag.pubads().collapseEmptyDivs(); googletag.cmd.push(function() { googletag.enableServices(); Get our answers to the most frequently asked questions, including how we assess freight rates and why a day rate is the right choice for a benchmark. Because there are so few ships left for spot trading, LNG spot shipping rates have risen to $450,000 to $500,000 a day due to lack of tonnage but very few vessel owners actually earn those rates. googletag.pubads().collapseEmptyDivs(); googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Global LNG shipping - orders and deliveries Report summary Spot charter rates softened to around US$56,000/day in February, despite a small recovery in the second half of the month. MEGI spot rates are back up to around $120,000 per day. How will natural gas markets evolve through the injection season? According to brokers, owners can now achieve three-way economics, which means they are compensated not just for a regular round voyage but also for positioning voyages. LNG that previously went to Asia was pulled to Europe instead. Last month, we pointed out that Western Sanctions Against Russia Spark Mayhem In Shipping As New Threat Emerges because Europe's scramble for LNG carriers to source LNG from abroad was soaking up all the supply of vessels. Your email address will not be published. In bulk commodity shipping which has far more experience with rate spikes caused by supply-demand imbalances there is no such pushback. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Greg Miller covers maritime for FreightWaves and American Shipper. By completing this form, I accept that IGU can store my business information. Rates have gone into the $300,000s per day on occasion in the past two winters. Necessary cookies are absolutely essential for the website to function properly. Compared to a year ago, the procurement rate is about 25.8% lower (58.143 /therm) than what it was effective April 2022. Spark assessed Pacific-based rates at $202,500 daily, a $64,250 premium over Atlantic rates at $138,250 per day As a result, earnings on a round-trip basis might be around $500,000 a day.. In an increasingly dynamic LNG market, participants need a trusted benchmark to capture and manage freight price risk. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); You can unsubscribe from these updates at any time. googletag.pubads().enableSingleRequest(); He currently resides in Manhattan with his wife and two Shih Tzus. An LNG tanker with a 160,000 cubic meter storage capacity could be chartered at an average spot price of 89,200 U.S. dollars per day in 2021. In an increasingly dynamic LNG market, participants need a trusted benchmark to capture and manage freight price risk. Day rates bottomed in March and have been very strong since May. LNG contracts and LNG spot and short-term trading Name: Infocus International Website: . Every Wednesday! According to Clarksons Platou Securities, spot rates for tri-fuel, diesel-electric (TFDE) propulsion LNG carriers are now averaging $112,500 per day, up 105% month-on-month. googletag.cmd.push(function() { How will natural gas markets evolve through the injection season? Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. As of April 1, 2022, Clarksons assessed headline spot rates for TFDE and Steam LNG carriers at $39,500 per day and $31,500 per day, respectively. More FDI needed to enhance Qatar's LNG production capacity: IIF. Both prices are up substantially compared to the average for the year, with year-date average for Asia of $49,000 per day. When you speak to one of our experts, you may be qualified to sample our industry-leading products on a no-cost basis. We manage your personal data in accordance with our privacy policy. Loaded & Rolling (Enterprise Fleet News/Analysis), Some individual deals were reported at over $300,000 per day, an all-out scramble for LNG to replace Russian pipeline supplies. googletag.pubads().collapseEmptyDivs(); window.googletag = window.googletag || {cmd: []}; The plant is out of operation through at least month's end. Europe has been gobbling up LNG spot cargoes on an unprecedented level, said Kalleklev. window.googletag = window.googletag || {cmd: []}; Transportation Price. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. The fire that knocked out the Freeport LNG gas-processing and export terminal has not affected the increase in spot rates, he said. Please enter your username or email address to reset your password. Spot ship rates have been dramatically impacted by energy. . First, given the high cost and exceptionally long delivery times for newbuilds, a company in need of shipping capacity may favor a long-term charter of an existing ship. It has since jumped to $248 million. Find current gas procurement prices and learn about upcoming changes to the core sales rate. 2020 GlobalLngHub | All Rights Reserved. Forward assessments for LNG carrier. Or if Pareto is right, seven. Rates for M-type, electronically controlled, gas-injection (MEGI) propulsion carriers are at $125,000 per day, up 89% month-on-month. NatGas Conference Call Schedule. By ICIS. LNG carriers are shooting for the stars. Tuesday, 25 April 2023. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. "There has been a substantial increase in long-term charters," said Feer, taking capacity off the spot market. The average LNG price for June delivery into northeast Asia (LNG-AS) was $11.5 per million British thermal units (mmBtu . In the past, more of those vessels may have been relet into the spot market to take advantage of skyrocketing rates. We may send you informational emails, but you can unsubscribe at any time. The broker also reported that a modern . A year and a half ago, the company was almost entirely spot-exposed, either through index-linked charters or short-term employment. if(window.innerWidth <= 1023){ This 13th edition of the IGU World LNG report has become one of the most anticipated, in light of another, even more eventful year for the LNG sector. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Rejiggering supply chains for the energy-stricken continent means increasing demand for LNG carriers to source gas further away. if(window.innerWidth<=1023){var write_html='