Charter rates for LNG carriers have risen to fresh historic highs as assessments for spot levels smash through half a million dollars per day. The Baltic Exchange’s BLNG2g route from the US Gulf Coast to Europe is up over $12,000 per day to $509,908 per day. The US Gulf to Japan route BLNG3g is also closing on the half-million mark at $485,476 per day. Unseasonably high temperatures in northern Europe have kept a flotilla of LNG carriers hovering around receiving facilities and nearby anchorages. In addition, high gas storage inventories in Europe are lengthening wait times.

But despite the new record-breaking levels, brokers report that there are few spot fixtures being concluded despite the copious requirements for tonnage, particularly in the Atlantic. Affinity LNG summed it up as: “Another week of chasing shadows on LNG shipping as prompt requirements aplenty have largely failed to yield fresh fixtures.” The broker reports that those with LNG tonnage that could be sublet are proving nervous of releasing tonnage. One market report listed just four available prompt LNG carriers in the Atlantic, two of which were in a warm condition, and a further two warm ships in the Pacific. “With so little liquidity and so much at stake, the terms of seemingly similar deals can widely vary and don’t always correspond into a coherent market view,” Affinity said.

Brokers said the greater action is currently on period fixtures as charterers turn their attention to cover for the following year and winter. They point to the forward rate assessments which are showing six-figure levels across steam turbine, diesel-electric and two-stroke LNG carriers for November and December 2023. Owners and operators of tonnage have been seen trying to cash in on the continuing super-strength in the market. Portugal’s Galp was seen offering out its upcoming LNG carrier newbuilding which delivers in January for a six-month period. Similarly MISC’s 157,21-cbm TFDE vessel Seri Balhaf (built 2008), which is a relet from trader Gunvor, has attracted offers and may have been snapped up. ​Brokers also report that Gail (India) remains in the market for an LNG carrier to ship volumes from the US for at least a seven-year period or longer from 1 January.

Fearnley LNG said: “… the tightness in 2023 now seems to be written in ink. Charterers have been working their way through the term tonnage availability lists at such a rate that one wonders whether independent owners will have anything left to do next year?”

Speaking in a recent webinar Poten head of data analytics Kristen Holmquist said LNG supply is going to remain relatively flat in 2023. She forecast around 20 million tonnes of additional LNG supply representing a rise of around 4% will come to the market next year. “This winter is not the end of the issue for gas supply globally,” Holmquist said, with a warning that 2024 could be short, if not shorter than what Poten is seeing for 2023.

“2023 will bring more of the same for the global LNG market as export volumes will not increase substantially and Russian flow are not expected to resume,” she said. But on a positive note, she flagged up several new US liquefaction projects which could be nearing final investment decisions.