LNG shipping market conditions remained tightly balanced in recent weeks as disruptions linked to the Strait of Hormuz, shifting Atlantic and Pacific demand patterns, and uneven vessel availability continued to influence chartering activity and freight rates.
Some significant LNG shipping developments in the Middle East over the past week, as both ๐ค๐๐๐ and ๐๐๐ก๐ข๐ vessels are reported to have transited the ๐ฆ๐๐ฟ๐ฎ๐ถ๐ ๐ผ๐ณ ๐๐ผ๐ฟ๐บ๐๐ย on laden voyages. This marks the first LNG cargoes loaded within the Gulf to exit via the Strait of Hormuz since conflict began in late February.
In the East, sparse May cargoes coupled with ample supply has led to ๐ต๐ผ๐ ๐ฐ๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ถ๐ผ๐ป across the tonnage classes for prompt requirements, while ๐ค๐ฎ๐น๐ต๐ฎ๐ ๐๐ผ๐น๐๐บ๐ฒ๐ continue to provide opportunities to owners that can call there. Requirements are emerging for June but currently these are stacked towards the second half of the month, leaving space for ๐ถ๐ฑ๐น๐ฒ ๐๐ถ๐บ๐ฒ. Requirements out of the US East Coast and especially West Africa are enticing owners to ๐ฟ๐ฒ๐ฝ๐ผ๐๐ถ๐๐ถ๐ผ๐ป ๐๐ผ๐ป๐ป๐ฎ๐ด๐ฒ, offering attractive utilisation and a ๐ฟ๐ฎ๐๐ฒ ๐ฝ๐ฟ๐ฒ๐บ๐ถ๐๐บ to Pacific cargoes.
The Atlantic market has proved stubborn, with rates remaining ๐๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐ผ๐๐ป๐ฑ in the mid-$90k/d range when accounting for vessel specifications. The requirement list has been ๐๐ป๐ฒ๐๐ฒ๐ป, with relatively ๐ณ๐ฒ๐ ๐ฐ๐ฎ๐ฟ๐ด๐ผ๐ฒ๐ in early June set against an ๐ฒ๐ ๐๐ฒ๐ป๐๐ถ๐๐ฒ ๐น๐ถ๐๐ from mid-June onwards. We may therefore see a little more ๐๐ฎ๐ฟ๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ as charterers face more or less competition for individual requirements, but the ๐ณ๐๐ป๐ฑ๐ฎ๐บ๐ฒ๐ป๐๐ฎ๐น๐ are showing no signs of change in the coming weeks.
Multi-month coverage through Q3/Q4 remains of interest but charterers have ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐ฏ๐ฎ๐ฐ๐ธ on taking on tonnage. The ๐ฏ๐๐น๐น๐ถ๐๐ต ๐๐ฒ๐ป๐๐ถ๐บ๐ฒ๐ป๐ of the major portfolio players has trickled through the market, and we do see some additional subletters hoping to lock-in ๐๐๐ถ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป, and this may explain the โwait and seeโ approach among charterers now.
Source: Fearnley LNGย
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