LNG
LNG freight rates in both the Atlantic and Pacific basins have continued to fall, Platts said, with Tri-fuel diesel-electric charters losing their advantage over two-strokes.
- Platts assessed LNG Atlantic carrier day rate at $1,500/d on Feb. 6, a 62.5% fall on the week.
- Newbuilds have led to an oversupply of LNG carriers, increasing competition and driving down rates.
- Low activity has caused rates to approach a theoretical negative, with operational costs exceeding charter rates, according to Platts.
- As owners will not accept charters at a loss, rates reflect the need to cover operational costs.
- In 2024, the average LNG Atlantic carrier day rate was $40,689/d, dropping to $15,000/d by Dec. 31.
- The limited availability of cargo has caused many charters to remain uncontracted.
- High fuel and delivery costs for ships contribute to higher prices.
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