The Baltic Exchange’s spot rate indicator for LNG carriers surged to a high for the year as seasonal strength coupled with interest in floating storage.
The Baltic Exchange’s LNGg Index surged by 15% on Friday alone, reaching the equivalent of an average spot rate of $155,000 per day.
The figure represents a one-week gain of 18.7%. Also, it is the highest level for the indicator, which averages spot rate assessments for three key routes, since 23 December, a time when rates were claiming down from the historic highs of late 2022.
Clarksons Research said on Friday that average rates for a 174,000-cbm two-stroke LNG carrier surged 31% during the week to $210,000 per day.
“LNG carrier spot rates continue to rise, with support from seasonal trends and increased interest for floating storage activity as European gas inventories hit 93% full and the contango widens,” the research arm of shipbroker Clarksons said.
Despite the rate gains, the firm said fixture activity has taken a blow from the Gastech conference, which gathers the natural gas and LNG industry in Singapore next week.
Rates for tri-fuel diesel-electric LNG carrier surged 38% during the week to hit $142,500 per day on Friday, Clarksons Research said.
As TradeWinds reported on Thursday, shipowner Cool Company believes the floating storage demand for LNG carriers is among a raft of factors that could push spot rates even higher as the seasonally strong winter period approaches.
Chief executive Richard Tyrrell pointed to filling gas storage in Europe.
“We are starting to see charterers use LNG carriers for floating storage once again,” he said.
