Spot charter rates for shipping US liquefied natural gas (LNG) to Europe have turned negative, indicating that there are now too many LNG vessels in the Atlantic region but fewer requirements

LNG freight price assessor Spark Commodities in a tweet on Tuesday (Feb 8) said: “First-ever negative Spark spot #LNG #freight rate: -US$750/day (about RM3,139) for the Spark30S Atlantic assessment.

“Highlights how current vessel charter payments do not cover the fuel cost of ballasting the vessel back to load port. Lots of ships and few requirements,” it said.

However, Spark Commodities explained that rates are assessed for a voyage between load, discharge and back to load.

“If negative, the payment to owners doesn’t cover the fuel cost of getting back to load.

“This is for spot only. Most vessels are on longer time charters,” it said.
Source: The Edge Makers