LNG carrier spot fixture volume surged by 75% in the first quarter, compared to the same period of last year, an analyst said in a report today.
Wells Fargo Securities shipping analyst Michael Webber, who compiled the data from a number of broker sources, tied the jump to what he described as opportunities from the structural and optimisation requirements of LNG projects.
But the data show that fixture activity by traders remained unchanged and made up a smaller proportion of total spot charters. Such charterers hired 10 vessels during the period, or about 18% of the 56 total fixtures.
The 10 fixtures booked by traders in the first quarter of 2015 was 31% of the total, Webber said in a weekly market report.
The LNG carrier spot market still makes up a small proportion of the market, but its role has increased as the trade becomes more flexible and as a crush of on-time newbuildings has met with delays in LNG export projects that are eventually predicted to lead to long-term growth in the trade once they finally come online.
Despite the surge in fixture activity so far this year, LNG carrier spot rates have remained relatively unchanged at low levels for months, with Webber quoting the latest rate estimate at $30,000 per day. That follows a 49% plunge last year, the International Gas Union said this week.
This week, Webber said one ship was fixed for loading in Africa, in addition two that had already been on subjects for cargoes out of the Middle East and Australia.
"While chartering activity in the west remains subdued, both tentative/firm requirements have surfaced east of Suez for loadings ex-Middle East and South East Asia," Webber said.
Despite stagnant rates, LNG shipping share prices have been on the up since the start of the year.
"LNG rates continue to scrape historically low levels, but the equities appear to be pricing in the challenged environment and looking to future catalysts for recovery," said UBS analyst Spiro Dounis.
