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Caspian Energy Journal Caspian European Club
Monday, 11 February 2019 11:00

Higher volume of spot LNG trades seen in 2019

Higher volume of spot LNG trades seen in 2019

The global LNG shipping spot market is expected to remain strong in 2019 on the back of higher spot LNG demand and trading volume growth outpacing LNG vessel supply, according to analysts and ship brokers, Caspian Energy News (www.caspianenergy.net) reports with reference to energyworldmag.com online news portal.

Higher spot freight rates could make inter-regional arbitrage less economic, making it costlier to ship LNG to Asian customers and impacting long-haul trades like the US-Asia trade route and reloads from Europe into Asia. However, in the long term higher rates could incentivize shipping companies and other stakeholders to invest in building new LNG ships to meet transportation demand and further develop the spot market.

The Asia Pacific Day Rate averaged $80.771/day in 2018 compared with $39.800/day in 2017, according to S&P Global Platts assessments. It had hit an all-time high of $190.000/day in November 2018, with a daily average of $183,333 for the whole month.

By the end of 2018, spot freight rates had corrected to $85.000/day, having averaged $133.944/day in December 2018, compared with $78,000/day in the same month a year earlier.

Market participants expect average spot charter rates in 2019 to remain strong, but said that exceeding the record high levels of $190.000/day is dependent on short-term trading strategies and market fundamentals that are not always sustainable.

More details: https://www.energyworldmag.com/higher-volume-of-spot-lng-trades-seen-in-2019/

Person in charge of the newsline: Olga Nagiyeva 

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