Strong European LNG demand is expected to keep more cargoes in the North
Atlantic and limit upside in winter shipping costs, even as a rebound in Asian
buying could tighten tonnage and push rates. Newbuild deliveries and a
re-routing of more US LNG to Europe shorten voyages and expand available
vessels; Atlantic and Pacific LNG freight rates have retreated to levels seen
before US and Israel opened hostilities with Iran. Spark Commodities data show
Tuesday’s Atlantic rate for the common 174,000 m3 two-stroke LNG vessel at
$25,750/day, versus a multi-year peak of $287,500/day in early March and
$42,750/day at end-February, before the conflict.
