LNG freight rates rise to eight-month high due to Middle East crisis
24.06.2025 - 12:27
The increase in rates is due to changes in routes, geopolitical tensions and increased demand for tankers.
Freight rates for the transportation of liquefied natural gas (LNG) have reached their highest level since October 2023. This is reported by Reuters.
As of June 23, the daily rate for a standard LNG tanker in the Atlantic basin rose to $ 51,750 – the highest level since October 3. In the Pacific Ocean, the figure reached $ 36,750 per day – the highest since October 25.
Analysts explain the increase in prices by several factors. First, part of the fleet changed routes, focusing on more profitable supplies to Asia, which extended delivery times – in particular, by bypassing the Cape of Good Hope – and reduced the number of available vessels. Secondly, Egypt’s large tender for the purchase of up to 160 LNG cargoes by 2026 has further increased demand for tankers.
The situation is also affected by the escalation of the conflict between Iran and Israel. Fears of the closure of the Strait of Hormuz have already led to an increase in insurance costs and a fivefold increase in premiums for military risks. About 20% of the world’s oil and gas supplies pass through this route, as well as all LNG supplies from Qatar.
The day before, USM reported that almost a thousand ships were stuck in the Persian Gulf due to congestion and navigation problems.
