LNG freight rates originating from the US Gulf Coast have reached their lowest levels since August due to a combination of factors, including a lack of demand and an increasing number of vessels in the spot market. Platts reports that as of December 20, the USGC LNG freight rate to Northwest Europe and Japan/Korea stood at $1.27/MMBtu and $2.77/MMBtu, respectively. The market attributes the decline to a current lack of arbitrage opportunities, stagnant demand, and an abundance of available spot vessels across the Atlantic. Delays at the Panama Canal, high inventories, and redirected vessels due to Suez Canal constraints further contribute to the weakened demand. Despite the potential for increased demand from longer voyages via the Cape of Good Hope, spot demand remains relatively weak, particularly in the lead-up to the holiday season.

SOURCE:GOOGLE