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Bulk commodity shipping rates are underperforming in general, but LNG shipping is in a league of its own. Spot rates for LNG carriers have plunged to unprecedented lows, and period rates are also under heavy pressure, courtesy of too many newbuildings, liquefaction project delays and a lack of floating storage in Europe

LNG freight rates have dropped to historic lows due to an oversupply of ships and slower-than-expected LNG production increases. In November, hiring a modern LNG carrier in the Atlantic basin averaged $19,700 per day. The oversupply stems from a surge in ship orders during Europe's energy crisis, with many new vessels entering the market this year and more expected by 2027. Delays in U.S. LNG export facilities and lower-than-anticipated European demand have exacerbated the situation.