Last Friday, Atlantic LNG freight rates had risen to the highest level since December, 2023 at $130,750 per day, while Pacific rates recorded their highest level since August, 2024, at $78,750 per day on Friday, Spark Commodities said.
Increased LNG production in West Africa and the US, and delays in discharging at Egyptian LNG terminals, led to a short squeeze on LNG shipping availability, thus rates have increased dramatically over the past three weeks, other sources said.
LNGCs were being offered at $170,000 per day in the London market last Friday morning.
This represented a 150% rise in rates in comparison with the Atlantic $75,000 per day rate being quoted two weeks ago.
Rate levels at the beginning of November were already about 50% higher than were seen in August.
At current levels, Atlantic freight rates are the highest they have been for two years, whilst Pacific rates also rose but not by the same margins.
Some US LNG importers were reportedly delaying purchases in the hope that the rate spike will evaporate.
European importers were likely to follow suit, leading to the prospect that there will be a shortfall in supply this winter, particularly if the Ukraine situation puts further restrictions on Russian output and shipments, sources said talking with newswires.
