After a strong startto the year, the gas carrier market faces headwinds as spot rates hit new lows.

A report from Arctic Securities highlights how spot rates for very large gas carriers (VLGCs) on the benchmark Arabian Gulf-to-Japan route hit a new low this week, equating to a time-charter equivalent (TCE) of $16,900 per day. The rate started the year at $49,000 per day

That level is below break-even costs, according to Arctic’s research, putting dividends at risk and potential earnings estimate cuts for the second quarter.