Bunker price volatility boosts freight rates for LNG-fueled dirty tankers
Bunker price volatility was the key driver behind higher LNG-fueled dirty tanker freight rates, compared with conventional tanker freight values, Aug. 31-Sept. 4, across benchmark routes. Platts Base Rates for LNG-fueled tankers reflect such freight costs in $/mt and provide a measure of how LNG bunker economics affect voyage costs relative to conventional tanker markets. ...
Recent bunker price volatility has led to increased LNG-fueled dirty tanker freight rates compared to conventional tanker freight values, according to data from Aug. 31 to Sept. 4. Platts Base Rates, which measure LNG bunker economics' impact on voyage costs, show a significant difference between the two fuel types. LNG-fueled dirty tanker freight rates on key routes such as Persian Gulf-China, UK Continent-UK Continent, and West Africa-UK Continent have seen notable increases, with the LNG-equivalent freight value rising by about 9% over the week.
The spread between LNG-equivalent and conventional freight costs is at its widest during this period, driven by higher LNG bunker prices and geopolitical tensions. This analysis provides valuable insights into the freight impact of LNG bunker economics relative to conventional fuels, aiding market participants in vessel selection and voyage economics.
Brief written by urgent.news from Hellenic Shipping News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.