Spark Commodities reported its first ever negative spot liquefied natural gas (LNG) freight rate on Tuesday as a glut of tankers in the Atlantic Basin that are moving cargoes faster to Europe has dragged down rates.

Spark assessed Atlantic Basin rates at minus $750/day, reflecting what CEO Tim Mendelssohn said is an increase in vessel availability and a reduction in charterer requirements. 

Europe is importing record volumes of LNG as prices remain at a premium to those in Asia. However, many of the vessels making deliveries have been secured for longer terms, easing the need for ships on the spot market. Ships that are available for spot deliveries, mainly those with cargoes from the United States, are also making faster voyages to the continent compared with sailing times to...