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LNG: LNG Ships Explore Lay Up Amid Negative Freight Earnings: Platts

LNG
Energy BulletsBulletPower BulletsCommodities

APAC LNG freight rates for TFDE carriers have dropped to historic lows, causing concerns about negative earnings and potential ship layups, Platts said.

  • Some operators plan to lay up less fuel-efficient carriers and instead charter another at cheaper rates.
  • Two-stroke LNG carriers are being chartered at low rates, resulting in daily losses.
  • The two-stroke APAC LNG carriers' day rate is currently around $14k /day, down from $90k/day a year ago.
  • Operators struggle to cover expenses, leading to possible ship layups, though trading companies may keep ships floating for flexibility.
  • The LNG market is oversupplied, but long-term charters remain stable. Recent ship deliveries have higher CAPEX, affecting TC rates.
  • The industry faces the question of laying up carriers amid record new deliveries and delayed projects.
  • The US moratorium on LNG export permits contributed to delays, impacting demand for new ships. Despite firm LNG cargo prices, weak freight rates erode trading margins.
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APAC LNG freight rates for TFDE carriers have dropped to historic lows, causing concerns about negative earnings and potential ship layups, Platts said.

  • Some operators plan to lay up less fuel-efficient carriers and instead charter another at cheaper rates.
  • Two-stroke LNG carriers are being chartered at low rates, resulting in daily losses.
  • The two-stroke APAC LNG carriers' day rate is currently around $14k /day, down from $90k/day a year ago.
  • Operators struggle to cover expenses, leading to possible ship layups, though trading companies may keep ships floating for flexibility.
  • The LNG market is oversupplied, but long-term charters remain stable. Recent ship deliveries have higher CAPEX, affecting TC rates.
  • The industry faces the question of laying up carriers amid record new deliveries and delayed projects.
  • The US moratorium on LNG export permits contributed to delays, impacting demand for new ships. Despite firm LNG cargo prices, weak freight rates erode trading margins.