The cost of shipping LNG from the US to Asia hit a record high on January 12, as appetite for the fuel from buyers there and delays through the Panama Canal reduced the amount of ships for hire.
According to Reuters, freezing temperatures across Asia and Europe have increased LNG prices and rose wider gas prices as buyers grapple with shrinking inventories and the shortage of tankers.
What is more, the ban on Australian coal imports into China has also boosted demand by Chinese buyers for LNG tankers to carry cargoes to Asia.
In addition, new build LNG tankers hitting the water were being pulled into service to meet the demand. In the meantime, the United States, ships LNG cargoes through the Panama Canal waterway to buyers in Asia.
However, Panama Canal congestion has led to waiting times of seven to 10 days or more for LNG vessels. Panama Canal delays had been affected by weather disruptions, higher than expected LNG traffic as well separate tanker shipments of LPG.