LNG Weekly Report - Week 40

The LNG shipping market experienced subdued activity this week, influenced by a lack of fresh spot requirements and covered October cargoes. With a build-up of prompt tonnage, downward pressure has emerged on Atlantic freight rates as owners grapple with finding employment. Despite this, many independent owners are hesitant to accept falling rates, anticipating a typical winter spike, which remains uncertain but expected to arrive later and possibly shorter than anticipated. Term requirements for 1H 2027 have injected some optimism for owners, although those with ships delivering in 2027 are progressively more amenable to lower rates to secure mid-term employment. The anticipated cessation of Russian LNG volumes into Europe from January will necessitate greater sourcing from the global market, compelling a shift in trading patterns towards longer-haul routes and fostering bullish conditions for LNG shipping in the long term.