Poten Report: Charter Rates Rise On Tight Availability

An extremely tight LNG shipping market with “zero structural availability” has driven charter rates to record levels over $100,000 a day, according to a recently released report by Poten & Partners LNG Commercial Group. Last year’s earthquake, tsunami and subsequent nuclear crisis in Japan exacerbated the problem, but a recovery in production at Nigeria LNG, new train ramp ups in Qatar and Peru and re-load opportunities from terminals on the US Gulf Coast also put a premium on chartering. Shippers gradually warmed to left-field solutions, including employing first-generation ships and paying hefty relocation charges to secure charters. Despite tight shipping availability, it was a record year for spot fixtures – at least 97 were confirmed in 2011 compared to about 79 in 2010. Download here