World News
Baltic Exchange Assesses Freight Rates for LNG-Fuelled Gas Carriers
The Baltic Exchange has launched a new set of freight rate indices for gas carriers running on LNG.
The new BLNGg assessments will be published twice a week from this week, alongside the existing assessments for LNG carriers using VLSFO as their fuel, the exchange said in an emailed statement on Wednesday. Three new futures contracts based on the assessments will be launched later this month, subject to regulatory review.
"As LNG markets continue to evolve globally, demand for new tools to manage the risk around its transportation is also growing rapidly," Peter Keavey, global head of energy at CME Group, said in the statement.
"The introduction of contracts based on the usage of LNG as bunker fuel among global shipping routes is the next step in the evolution of freight and provides another market-based solution to help our customers to manage their global gas risk."
The indices are based on the following assumptions, the exchange said:
- 17 knots on 210 cbm LNG/day laden
- 16 knots on 190 cbm LNG/day ballast
- 0.1% boil off
- Port consumption 42 cbm LNG/day idle
- Port consumption 85 cbm LNG/day working
LNG carriers burning boil-off gas from their cargoes as fuel currently take up a large proportion of global LNG bunker demand. But this is a separate section of the market, as these ships do not require any bunkering infrastructure and do not pay suppliers for their fuel.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 4.50 | 678.50 | 4.50 |
| Rotterdam | 512.00 | 3.50 | 676.00 | 9.00 |
| Houston | 552.00 | 3.00 | 682.00 | 4.00 |
| Fujairah | 555.50 | 7.50 | 753.00 | 1.50 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
Popular Now More
-
Nov 26The new hire previously worked as a bunker trader for IBT Bunkering & Trading in Hamburg. -
Nov 26The company has hired Mike Parrent, formerly marketing manager for Bomin before its acquisition by Minerva Bunkering earlier this year, as its new physical desk manager in Houston. -
Nov 21CCO Christoffer Berg Lassen is stepping down from the company to be replaced by Anders Grønborg, while Peder Møller becomes its first chief operating officer.