North American exports raise LNG shipping prices economy

Spot freight rates for LNG carriers rose significantly, and record exports from North America attracted more ships, according to Bloomberg.

The cost of renting a ship to transport liquefied natural gas from the United States to Europe jumped by about 12% last Friday, reaching $130,750 per day, its highest level since December 2023, according to data from Spark Commodities.

Prices have increased since early October as production from new projects in North America increases, requiring more ships to deliver super-cooled fuel to customers, including in Asia.

More highs

There appear to be more opportunities for price increases, and a ship has been chartered for more than $150,000 per day for a transatlantic voyage starting in the second half of December, according to Bloomberg, citing traders familiar with the matter.

North America’s 30-day average of LNG exports rose to an all-time high on Thursday, up nearly 50% year over year, according to ship-tracking data compiled by Bloomberg.

The rise in shipping rates represents a turnaround after the market had been stagnant for most of the year due to a surplus of ships.

However, the rise has prompted some LNG buyers to postpone loading operations in the Atlantic Basin, according to Spark Commodities.

In a separate context, the cost of chartering a tanker in the Pacific Ocean reached its highest levels in more than a year.