LNG tanker rates triple to $200,000 daily amid US-Iran war
What's the story
The cost of leasing liquefied natural gas (LNG) tankers in the Atlantic Basin has more than tripled to over $200,000 per day. The spike comes as Qatar's shutdown of LNG production amid escalating tensions between US-Israel and Iran. The new rate is at least three times higher than the last assessed price by shipping firm Spark Commodities, which was $61,500 earlier on Monday.
Market reaction
No transactions reported at new offer levels
The shutdown of LNG production in Qatar has directly impacted the shipping industry, causing a spike in tanker rates. Shipowners and brokers are now demanding more than $200,000 per day for these vessels. However, no transactions have been reported at these new offer levels as of yet.
Expert opinion
Consultant warns of potential shipping rate impact
Richard Pratt, a consultant with Precision LNG Consulting LLC, has said that actual deals to lease vessels aren't likely to spike unless production cuts are extended in regions like Qatar and Abu Dhabi. He also noted that the longer distance ships would have to travel from the US to Asia could further impact shipping rates.