LNG charter rates head lower as shipowners start to feel a floor

Spot charter rates for LNG carriers dropped lower this week as the coronavirus market fallout continued to dampen and disrupt demand.

Daily rates for 174,000-cbm, gas-injection LNG carriers were down almost 10% week-on-week at levels in the low-to-mid $50,000 range, while tri-fuel diesel-electric ships were pegged at around the $40,000 mark.

Brokers said market conditions could spell further falls, but one indicated that rates are reaching a level where shipowners may now opt to idle their vessels rather than trade them.