LNG shipping rates seen rising
Rates to ship liquefied natural gas rose as increased bookings cut the supply of available vessels, according to Morgan Stanley. Four ships were chartered in the past week, adding to six in the prior 14-day period, Fotis Giannakoulis, a New York-based analyst at the investment bank, said in an e-mailed report today. Spot rates increased 20 percent from last month to $120,000 a day, he said, citing figures from shipbroker Poten & Partners Inc.
Demand for the vessels is returning after a four-month slowdown through the end of November, according to the report. Traders are now struggling to find available vessels to transport cargoes to Asia from the Atlantic as some owners withhold ships rather than seeking charters, Giannakoulis said.
The lack of available vessels and an increase in LNG prices in the Atlantic are making cargo trading more difficult, Giannakoulis said in the report. “That prompts the few owners of modern ships to retain their vessels rather than seek for a sub-let,” he said.