LNG charter rates surged sharply in mid-November, with Atlantic spot rates breaking above $100,000/day — their highest level since early 2024. This latest jump in LNG charter rates reflects tightening winter fundamentals driven by stronger LNG supply, rising floating storage and seasonal demand.
Spot LNG charter rates soared by almost fivefold since the beginning of October, which typically marks the start of the heating season in the Northern Hemisphere. Pacific spot charter rates grew at a somewhat more moderate level, still tripling since the start of October and reaching just over $75,000/day.
There are several drivers behind this strong increase in spot LNG charter rates:
(1) Strong LNG supply growth: global LNG exports surged by a staggering 14% y-o-y since the start of October, primarily driven by stronger deliveries from the US to Europe.
(2) Floating storage: LNG floating on water is up by almost 40% since the beginning of November, with some traders betting on higher gas prices as we approach winter and preferring to keep LNG on the water for longer.
(3) Winter is coming: seasonal colder weather is boosting LNG/gas demand in import markets and hence provides some support for spot LNG charter rates.
This seasonal uptick in spot charter rates gives some breathing space to LNG carrier operators, who faced historically low LNG spot prices over the first three quarters of the year.
What is your view? How will LNG spot charter rates evolve in 2026–27? More than 170 new LNG carriers are expected to be delivered in these two years — will LNG trade growth keep up? Could we see a tightening of the LNG shipping market?
Source: Greg MOLNAR (LinkedIn), posted with permission.
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