Fearnleys Weekly - Gas

Chartering

The VLGC freight market remains under pressure and there are still few signs of improvement in the short term. East of Suez activity levels have been low this week and with the amount of ships prompt open, most Charterers are of the view that freight has to come down even further. However, with earnings to owners hovering around OPEX costs, there might not be very much more to give. In the West, we have seen the premiums diminish and Houston-Flushing equivalent freight has been concluded at sub USD 20 PMT this week. There has been several enquiries in the West for Eastern destinations, but little has been concluded as there is still a gap to be filled between bids and ask between owners and charterers. Currently the Houston-Chiba via Panama freight rate is assessed around mid-high USD 40’s PMT, while some trader relets are reportedly willing to consider Houston-Chiba via Cape of Good Hope at below mid USD 40’s PMT, a freight rate that would yield well below current Baltic earnings of some USD 9000 per day at today’s bunker prices.

Activity level

COASTER 15-23,000 cbm 82,000 cbm
Soft Low Low

Rates

* Excl. waiting time, if any
SPOT MARKET (usd/month)* This week Last week Low 2017 High 2017
VLGC / 84,000 285,000.00 280,000.00 280,000.00 765,000.00
LGC / 60,000 350,000.00 350,000.00 350,000.00 500,000.00
MGC / 38,000 420,000.00 420,000.00 420,000.00 550,000.00
HDY / 22,000 390,000.00 400,000.00 390,000.00 550,000.00
ETH / 10,000 445,000.00 445,000.00 445,000.00 540,000.00
SR / 6,500 410,000.00 420,000.00 410,000.00 450,000.00
COASTER Asia 195,000.00 195,000.00 190,000.00 195,000.00
COASTER Europe 170,000.00 175,000.00 110,000.00 195,000.00

LPG/FOB prices (usd/tonne)

Propane Butane ISO
FOB North Sea / ANSI 350.00 327.00
Saudi Arabia / CP 385.00 390.00
MT Belvieu (US Gulf) 323.02 340.31 342.96
Sonatrach : Bethioua 355.00 355.00

LNG

SPOT MARKET (usd/day) This week Last week Low 2017 High 2017
East of Suez 155-165'cbm 34,000.00 33,000.00 25,000.00 38,000.00
West of Suez 155-165'cbm 40,000.00 41,000.00 29,000.00 52,000.00
1 yr TC 155-165'cbm 31,000.00 31,000.00 31,000.00 35,000.00

Sales and purchases

Vessel Cbm Type Built Buyers Price Misc
No reportable sales this week