Shipping: Lng Freight Rates Accept Doubled Since The Halt Of August

Don't tell you lot weren't warned (or touted, your call). See below.

From MarineLink, Oct 23:

Headline rates for transportation liquefied natural gas (LNG) inwards Pacific too Atlantic basins stand upwardly at only about $140,000 to $150,000 a solar daytime for a 160,000 cubic meter LNG tri-fuel diesel fuel electrical (TFDE) vessel, brokers say.

That is a 6-year high too compares to Atlantic basin rates of $75,000 at the cease of August too only about $95,000 at the cease of September.

Rates accept jumped due to render from novel plants, longer distances traveled too anticipation of higher prices prompting shippers to lock inwards longer-duration contracts.

"Charterers operate along to lock inwards multi-month contracts ahead of the wintertime too nosotros operate along to believe LNG transportation rates volition stay rigid due to real attractive supply/demand fundamentals inwards the coming quarters," Jefferies said this week...MORE

The story mentions rumors of an Asian (I retrieve Japanese) charter at $200,000 per day.
Commodity Trade Risk Management Center has a postal service from a few days agone that asks:

Could LNG transportation location rates striking $250,000/day?
Published nineteen Oct 2018

Spot solar daytime charter rates for LNG carriers accept striking their highest levels since mid-2012 on the dorsum of depression prompt availability of vessels inwards both the Atlantic too Pacific basins.

This week, S&P Global Platts assessed Pacific too Atlantic solar daytime rates for LNG vessels at $140,000/day too $130,000/day, respectively, upwardly 40% since mid-September, too nearly 3.5 times higher than a twelvemonth agone when rates were nonetheless only about $40,000/day.

The surge inwards rates indicates that LNG render is growing faster than novel ships are existence delivered. The twelvemonth 2018 volition come across the largest publish of newbuild LNG carriers added to the global fleet, taking it good by the 500 mark.

Shipping typically accounts for 5%-20% of the delivered LNG cost ex-ship, pregnant large moves inwards rates tin accept a important final result on the lastly cost of gas, too the mightiness of traders to arbitrage LNG cargoes betwixt regions.

Day rates laid out broke the 6-figure degree only about mid-September. Multiple transportation sources said no ships were available from independent ship-owners across both basins amongst chartering opportunities focused on relets from portfolio players or traders.

In the Pacific region, a location charter for mid-November was reportedly northward of $160,000/day, too several multi-month charters inwards the low-$100,000s/day.

“What nosotros are virtually to witness inwards LNG transportation has exclusively happened twice since 2008 amongst slap-up magnitude,” Nicolay Dyvik, transportation query analyst at DNB Markets, said, adding that LNG freight rates could ascension equally much equally $250,000/day if markets instruct tighter....MORE

I tell touted because we've been pitching this activity since Teekay's Eduard Toll made its historic Russian Federation run lastly Jan despite the 1.8 meter (5.9 human foot thick) ice.
Some of the recent posts:
Oct. 11 
Shipping: Norway's Flex LNG to Buy Five New LNG Tankers at $180 Million Per (FLNG:NO)

Oct. 10
Shipping/Natural Gas: "China Blinks First In LNG Face-Off With U.S."

We volition live dorsum amongst equities inwards a few hours but for instantly natural gas.
As we've mentioned over the by few months the LNG carriers are i of the few transportation lines that tin instruct away amongst naming their ain price. No consider how long it lasts, ships are nether structure correct now,* but for the instant they are making money,
Sept. 28
Shipping: Price To Ship LNG Spiked too Will Remain High Through 2019

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