The Briefing Room
General Category => Economy/Business => Topic started by: thackney on September 24, 2018, 04:44:47 pm
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LNG Shipping Rates Spike with No Respite Seen Through 2019
https://gcaptain.com/lng-shipping-rates-spike-with-no-respite-seen-through-2019/
September 21, 2018
The price of shipping liquefied natural gas (LNG) has spiked in September and is likely to remain high next year, buoyed by rising production from new plants and concerns that demand for LNG vessels will outpace supply.
The rate for vessels shipping LNG from the Atlantic Basin to Asia has jumped to $90,000 to $95,000 a day this week from $75,000 a day at the end of August, brokers and traders said.
Rates, which broadly hovered around $30,000 to $40,000 a day from 2015 to 2017, have risen due to longer distances covered to transport LNG from new terminals in the United States and Arctic Russia, surging demand in China and a limited number of ships.
ates have hit “the highest levels since the last bull market of 2012 … elevating the starting point for another anticipated winter market rally and the next cyclical upturn,†said Jonathan Chappell, analyst with Evercore ISI.
Shipping firms see little sign of them slipping soon, predicting high rates for 2019 or longer, during their earnings calls this month.....
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This is also good news as production continues to surge of natural gas that is liquefied for export.
Wish we could build the ships in US, but that ship has passed.