World News
LNG Freight Index "Stubbornly Unchanged"
Drewry reports that its LNG freight index was "stubbornly unchanged" in June despite more interest in shipping the fuel.
Still, the research and advisory firm says market sentiment is positive, with a number of new deals for LNG transportation reached over the month.
One hurdle for the industry comes from Africa, where a conflict with Nigeria LNG led the Nigerian Maritime Administration to block ship movements form the Bonny Channel, something that could eliminate one cargo per day.
The Maritime Administration blocked Nigeria LNG ships due to a dispute over government levies, but it lifted the blockade after the company agreed to pay the money "under protest," pending a judicial ruling, the Wall Street Journal reports.
In addition, the newly commissioned Angola LNG will go on a planned maintenance soon, and Pluto LNG in Western Australia was closed for a few days earlier this month due to technical problems, delaying about 200,000 tonnes of cargo.
With fleet supply on the rise, Drewry predicts that these types of delays could reduce charter rates in the "very short term."
RS Platou Economic Research said last month that spot rates for LNG shipping will be unprofitable in the next two years as more ships enter service while supply remains tight.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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