(Nov 24): Spot freight rates for liquefied natural gas tankers extended a surge as record-breaking exports from North America tied up more vessels.
The cost to hire a ship transporting LNG from the US to Europe jumped by about 12% on Friday (Nov 21) to US$130,750 a day, the highest since December 2023, according to data from Spark Commodities. Rates have rallied since early October as output ramps up from new projects in North America, requiring more vessels to deliver the super-chilled fuel to customers, including in Asia.
There appears to be even more upside for rates, with a ship chartered for more than US$150,000 a day for a journey in the Atlantic Ocean starting in the second half of December, according to traders with knowledge of the matter.
The 30-day moving average for North American LNG exports rose to the highest level on record on Thursday, up about 50% year-over-year, according to ship-tracking data compiled by Bloomberg. Spiking freight rates are a turnaround after the market languished for most of the year due to a glut of ships.
However, the surge has resulted in some LNG buyers seeking to delay loadings in the Atlantic basin, according to Spark Commodities. Separately, the cost to hire a tanker in the Pacific Ocean is also the highest in more than a year.
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