LNG Weekly Report - Week 24

In Week 24, the LNG market experienced increased activity with notable spot fixtures reported in both the Atlantic and East of Suez, leading to stronger freight rates. Spot rates for long haul vessels reached USD 118,000, reflecting a 7 per cent increase, while short haul rates skyrocketed to USD 110,000, up 16 per cent. This surge in fixture activity signals a tightening prompt market, particularly as July requirements emerge. However, charterers are cautious regarding pricing for Q3 and winter contracts amid ongoing geopolitical tensions in the Middle East and a widening JKM-TTF spread, which complicates supply security in Europe and Asia. As the market recognizes the potential risks associated with delay in securing coverage, long-term chartering is anticipated to ramp up in response to the unstable freight environment.