As Winter Demand Tightens Vessel Market, Atlantic LNG Charter Rates Surpass $110,000/Day.

Atlantic Rates Reach Two-Year Peak

LNG charter rates in the Atlantic basin reached their highest levels since early 2024 during mid-to-late November, reaching spot rates above $110,000 per day for intra-Atlantic voyages (Argus ARV5 round-trip rate for intra-Atlantic voyages reached this mark on Wednesday; up from $86,000/day last Friday; an increase of over 24% from earlier that week) with US-to-Europe routes seeing spot charter rates reach as much as $130,750 daily - the highest daily shipping rate since December 2023!

This dramatic acceleration represents an abrupt reversal from the historically depressed rates that had pervaded much of 2025 so far. Spot LNG charter rates have skyrocketed since October, the start of heating season in the Northern Hemisphere - providing relief to LNG carrier operators after experiencing sustained weakness earlier in the year.

Multiple Factors Influence Market Tightening

Multiple interrelated market dynamics combined to tighten the Atlantic LNG shipping market during this period. Global LNG exports surged by an astounding 14 percent year-on-year since October 1, with stronger deliveries from the United States to Europe being driven by higher U.S. deliveries and seasonal demand from northern Hemisphere importers anticipating winter driving increased freight rates.

Floating storage levels saw a sudden and drastic surge, nearly 40 percent since November began, as traders placed LNG cargoes onto the water to bet on rising gas prices as winter approached. Discharge delays at Egyptian ports further disorganized vessel scheduling arrangements and forced charterers to secure tonnage from the market for future loading dates, adding further demand pressures. All these factors combined led to short-term shortages in vessel availability throughout November laycans in the Atlantic basin.

Shipowners Relocate Vessels Between Basins

Shipowners were incentivized by a widening freight spread between Atlantic and Pacific basins to reposition vessels from Asia to the US Gulf Coast by increasing ARV4 rate from intra-Pacific voyages from $69,000/day in Q3 2018 to around $71,000/day during Q4, creating an attractive financial incentive despite ballast leg costs and Panama Canal transit fees; two such vessels, Aristos I and Kinisis were reported moving toward US Gulf with faster-than-usual speeds targeting arrival by December 10 so as to capture key early December loading windows for early December cargo loading windows.

Market participants estimated that owners could recoup ballast leg costs--taking into account lost Pacific basin income and boil-off usage--with Atlantic basin charters of approximately 40-42 days at current prevailing rates of $145,000/day or higher in the Atlantic market. One fixture heard for first-half December loading in the US Gulf closed at this rate with US LNG producer Cheniere subleasing their vessel to German utility EnBW; this subletting activity confirmed the significant earnings opportunity that had emerged by late November in this market.

Pacific Rates Increase with Atlantic Growth but Lag

Pacific spot charter rates experienced more moderate growth than Atlantic ones but still saw significant gains during this period. Since October 1, spot rates had tripled since their start - reaching just over $75,000/day by mid-November and $69,000/day in late November respectively. While this measured increase reflected weaker fundamentals in Asia, rates still saw seasonal winter demand as well as an arbitrage window for US cargoes delivered to Asia which tightened vessel availability by supporting eastbound flows.