What are the LNG shipping and ballast rate assessments?
We publish Asia Pacific LNG Carrier Day Rate, Atlantic (APDR), Atlantic LNG Carrier Day Rate (ATDR), Asia Pacific LNG Ballast Rate and Atlantic LNG Ballast Rate on a daily basis.
We launched the APDR and ATDR in June 2010, and continues to enhance our LNG freight methodology in line with market changes. Recent changes include revision of shipping assumptions in January 2016, adding new freight routes via the Panama Canal in July 2016 and the launch of freight routes into the Middle East in February 2017. We launched the Asia Pacific LNG Ballast Rate and Atlantic LNG Ballast Rate in July 2018 and added port costs into shipping calculations at the same time. We added 12 new freight routes from the Malaysian Peninsula in May 2019.
The Carrier Day Rates reflect the daily hire rates for chartering a modern Tri Fuel Diesel Engine (TFDE) vessel for a short period in the Atlantic and Pacific basins, loading 25 to 45 days ahead of the day of assessment.
The Ballast Rates reflect the value typically charged by ship-owners to charterers to position and reposition vessels for a spot voyage. We assess this as a percentage and is incorporated into its calculations for the return legs of freight route costs. The rates replace the old practice of assuming round-trip economics at 100% of Day Rates for all voyages.