LNG Shipping Rates Plunge on Increasing Vessel Availability

SINGAPORE/LONDON, Feb 5 (Reuters) – Shipping costs for liquefied natural gas (LNG) cargoes have tumbled to five-year lows as newly built carriers added to the global fleet outpace shipping demand and shorter average journey times have increased vessel availability.

Atlantic freight rates assessed for vessels with two-stroke engines capable of carrying 174,000 cubic meters of LNG, the most common type in the market, were at $4,250 per day on Tuesday, according to pricing agency Spark Commodities. Prices on Friday plunged to $3,500 a day, the lowest ever in Spark’s data which goes back five years.

The Atlantic rates are down 82% since the start of the year, and have dropped over 90% from the same time last year.

Rates for the same class of ship on Pacific routes have nearly halved so far this year, dropping to $11,000 a day on Tuesday, Spark’s data showed. That is lowest ever for its da…