While production of liquefied natural gas (LNG) has increased in West Africa and the USA, there are also delays in unloading at Egyptian LNG terminals.

These delays have led to a shortage of available LNG transport capacities, with the result that freight rates have risen dramatically in recent weeks. LNG freight rates of USD 170,000 per day were called on the London market on 21 November. This means that the freight rate across the Atlantic has more than doubled compared to the previously quoted price of USD 75,000 per day. And prices at the beginning of November were already around 50 per cent higher than the freight rates for the Atlantic in August, while prices for the Pacific have risen, but not to the same extent.

At the current level, freight rates for the Atlantic are higher than they have been for two years. The longer the shortage of transport capacity continues, the greater the impact on geographic freight rates will inevitably be. Some LNG importers in the United States are therefore delaying their purchases in the hope that the rise in freight rates will subside again. European importers are also likely to wait and see. This could lead to supply bottlenecks in the coming winter, especially if Ukraine succeeds in further curbing Russian gas production and deliveries.

The fact that the German government lowered the gas warning level to "early warning level" in the summer and allowed the gas storage facilities in Germany to be filled to only 68 % could then take its revenge. However, last winter was also colder than in previous years and German industry is once again consuming almost as much gas as before Russia's attack on Ukraine in February 2022.

So the order of the season is to save money again.

kdk, The Maritime Executive, NDR