Prompt charter rates for LNG carriers fixed on a spot basis held firm through much of November, following rises a month earlier, as northeast Asian demand for Atlantic volumes picked up during the month.
The continued interest in inter-basin journeys, as firms sought to fix vessels to load at Atlantic export projects and deliver into Pacific markets, provided firm demand support to rates over the month.
Activity slowed through mid-November as prospective charterers fixed their firm requirements and pulled back from the market while available tonnage dried up, leading owners and subletting firms to hold offers high. This created a wide bid-offer spread, market participants noted, with only a limited number of charterers willing to meet owners in the middle.
But activity later in the month did quicken as more firms sought to secure vessels for January fixtures, with spot vessel availability falling away as cargoes were matched with vessels. With northeast Asia LNG prices retaining an ample premium to European prices for US January loadings, there was wide scope for quick inter-basin flows to remain in January and even into February, buoying tonnage demand expectations.
And a spate of delays to newbuild carrier deliveries also pushed some new supply that had been set to come onto the water in late October-December into the first quarter of next year, further tightening the prompt market through November.
A total of two carriers expected in November, two in December and one in late October have been delayed into the next quarter. At least two have already been tied to long-term charters, suggesting that these firms will have to secure replacement carriers until the deliveries are made.
Forward spot charter rates for much of the first quarter 2021 firmed over late November on expectations of continued inter-basin deliveries, but rates for the second quarter slid over the month as sentiment weakened further for the period. Around 18 new carriers are scheduled for delivery in January-March, followed by 13 in the following quarter, while tonnage demand is expected to slow before picking up again on midsummer cooling demand.
