Atlantic LNG: Spot charter rates fall further

Spot charter rates in both basins fell on Friday, as strong subletting activity continued to outweigh limited tonnage demand, and US export projects faced further disruptions.

The Argus-assessed ARV2 round voyage rate for US-northwest Europe journeys slipped to $25,900/d from $44,800/d a day earlier, while the ARV3 rate — for US-northeast Asia — also fell to $26,000/d from $45,100/d.

The falls came after a number of fixtures were done in the past few days at much lower levels than earlier in the week, as a result of subletting activity from charterers with surplus shipping capacity.

South Korea's Kogas chartered two carriers from Cheniere to load at Sabine Pass on 17 and 19 February, with market participants suggesting there was ample tonnage on offer particularly from charterers that had spare vessels, such as Cheniere and Spain's Naturgy.

Recent production issues at US liquefaction facilities last week — stemming from the cold weather that affected all four Gulf coast export terminals — have already removed around 17 cargoes of supply from the market, leaving a number of charterers with surplus tonnage.

Some carriers were quickly sublet, but most have remained in the US Gulf awaiting the next loading slot or a sub-charter for a spot journey, driving a rise in sublet offers through March.

Further supply disruptions in the US added pressure on the shipping market. Transit through the Sabine-Neches and Cameron waterways in Louisiana was suspended on Friday because of thick fog, hampering loadings at the 25mn t/yr Sabine Pass and 15mn t/yr Cameron LNG export terminals. The Cameron waterway was reopened later in the day, according to shipping agent Moran.

Exports from Sabine Pass, and to a less degree Cameron, resumed quickly this week following last week's cold spell. But neither of the two Texas-based terminals — the 15mn t/yr Freeport and 15mn t/yr Corpus Christi facilities — have loaded a cargo since 18 and 13 February, respectively. But loadings could resume in the coming few days, with two carriers apiece berthed at the two terminals on Friday.

The ARV1 round voyage rate — for Australia-northeast Asia — also fell on Friday, though tightened its differential to the ARV2 and ARV3 rates, having already posted substantial falls earlier this month as vessel availability rose sharply amid a much-reduced incentive for inter-basin cargo flows from the Atlantic. More fixtures could emerge in the coming few days, with China's Unipec expected to charter a carrier to load a March cargo from Australia.