Spot freight rates for liquefied natural gas (LNG) carriers have continued to rise sharply due to record LNG exports from North America, which have absorbed more vessel capacity and tightened market supply. According to ship-tracking data, the 30-day moving average of North American LNG exports hit a record high last Thursday, up approximately 50% year-on-year. The sudden surge in freight rates has reversed the market downturn caused by vessel oversupply for most of the year.
Data from Spark Commodities shows that last Friday, the daily charter rate for LNG carriers transporting cargo from the U.S. to Europe rose about 12% to $130,750, the highest since December 2023. Earlier in the week, the spot charter rate for U.S.-to-Europe LNG shipments jumped 19% to $98,250 per day, the highest since January 2024.
Since early October, freight rates have rebounded as new North American projects ramped up production, requiring more vessels to transport the super-chilled fuel to customers, including those in Asia. Industry sources indicate that rates may climb further—one Atlantic-route LNG vessel scheduled for late December has already been secured at over $150,000 per day.
However, Spark Commodities noted that the rapid rate increase has prompted some LNG buyers to delay loadings in the Atlantic basin. Meanwhile, daily charter rates for Pacific-route LNG carriers also reached a one-year high.
The rising freight costs could widen the price gap between European and Asian natural gas, as shipping U.S. cargo to the Pacific region becomes more expensive. However, analysts suggest the current rate surge may be nearing its peak, with limited upside potential. A wave of new LNG carrier deliveries in the coming years is expected to cap further increases in charter rates.
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