The cost of hiring a liquefied natural gas vessel has, in the recent past, shot high on the short-
term market compared to what has been since dating back to 2013. By the week of October 9 th ,
day rates for a standard tanker east of the Suez Canal shot up 57%, as matters related to the U.S's
threatened penalties on COSCO Shipping Corp of China escalated, just on the wake of the
heating season beginning to boost demand. Other issues affecting the availability of ships include
Typhoon Hagibis in Japan and the accumulation of stocks of fuel on tankers.

The alarming rise in the prices is clear evidence of the effect of the penalties sanctioned on
China's largest shipper by the U.S, to the rest of the world's trade balance, in addition to the
already high oil tanker rates. China has plans to see to it that the sanctions are lifted, through
negotiations in Washington. A spokesman admitted that it might not be clear whether the
sanctions on COSCO would have a significant impact on the LNG shipping market, but it is
quite getting different responses.

According to Fearnleys in London, shipping rates in the east of the Suez Canal rose to $130000
on October 9 th . On the other hand, Spark Commodities Pte Ltd. averages the price at $133,200.
Some traders claim that China National Offshore Oil Corp. is making a move to see to it that
some two cargoes are delivered to its Dapeng terminal as a result of the sanctions. The traders
also added that North West Shelf LNG that is based in Australia, failed to fill two tankers meant
to deliver cargo for CNOOC since the vessels are owned by a section of COSCO. A Woodside
spokesman refused to comment though there was an acknowledgment that they were aware of
the sanctions and would obey all laws to the latter.

Ship tracking data indicated that five specialized ice-class vessels for Russia’s Yamal LNG
project in the Arctic are still serving as usual. The majority shareholder of Yamal LNG, Novatek PJSC, stated that he hopes there is a solution to the issue of sanctions. He, however, said that Yamal LNG is in a position to remain operational should the problems at hand drag on.