Rates for shipping LNG in Pacific and Atlantic basins amount at approximately $140,000 to $150,000 a day for a 160,000 cubic metre LNG tri-fuel diesel electric (TFDE) vessel, according to brokers.
This number is a 6-year record and compares to Atlantic basin rates of $75,000 at the end of August and around $95,000 at the end of September, Reuters said.
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This increase was cause by supply from new plants, longer distances and expectation of higher prices, which make shippers sign longer-duration contracts. LNG shipping rates are expected to remain strong.
The high rates have now reduced spot LNG deliveries in Asia, because if shipping stands at such prices it can account for more than 10% of the price of LNG.
What is more, Asian spot LNG prices have decreased for the fourth consecutive week due to new supplies from Australia, lower oil prices and the lack of Chinese buyers.
However, increasing shipping rates have not prevented cargoes from Northwest Europe, which is experiencing a high level of LNG.
Finally, European LNG supplies are mostly derive from Qatar, Africa and Russia, with shorter distances needing to be shipped and at lower LNG prices.
