Baltic Exchange Shipping Insights

Capesize

THE Capesize market experienced a strong and sustained rally during the week, underpinned by firm sentiment and positive momentum across both basins. The BCI 5TC surged by $5,942 to close at $25,575, driven by tightening tonnage lists and increased cargo volumes, particularly on the South Brazil and West Africa to China routes.

In the Pacific, C5 rates steadily improved, supported by solid demand from major miners, heightened operator activity, and a gradually tightening tonnage list. A mid-week flurry of fixtures pushed rates close to the $9.80 mark before easing to the $9.50–$9.60 range by week’s end.

Meanwhile, the Atlantic basin saw robust activity, especially on C3, with rates climbing from the low $21s to $23 for end-August laycans, aided by strong enquiry and a steadily shortening ballaster list. In the North Atlantic, sentiment remained bullish, with firm transatlantic and fronthaul fixtures, one reportedly around $50,000/day, highlighting the tight tonnage situation and strong demand.

Panamax

A mixed week for the Panamax market. What started out on a firm footing at the start, the gains initially seen would slowly dissipate as the week went on with Charterers drawing breath and reassessing their positions. However, the week ends with strong fundamentals duly restored with tonnage in parts appearing tight on the nearby and rates holding steady again.

From the Atlantic, a muted week in the North, whilst in the South $18,000 agreed early part of the week for an 82,000-dwt delivery Singapore for an EC South America round trip redelivery Far east, for the same trip/type closer to $16,000 achieved more recently.

Asia saw healthy levels of demand from Indonesia and Australia, circa $16,000 achieved a few times on index type tonnage for Australian round trips. The week saw a decent pick up in period activity, noticeably reports of an 82,000-dwt delivery Japan achieving very high $15,000’s basis 5/7 months, the highlight on the week.

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Ultramax/Supramax

The week started on a very firm footing the lack of vessels and greater demand led to healthier rate levels being achieved in most key areas. However, as the week came to a close this positive momentum seemed to have stalled, and a ceiling was reached.

In the Atlantic, from the US Gulf at the beginning ultramax size were fixing around $30,000 for fronthaul business with similar levels being achieved for trans -Atlantic runs. From the South Atlantic a 63,000-dwt was heard to have been fixed delivery EC South America for a trip to Chittagong at $19,000 plus $900,000 ballast bonus.

From Asia, demand for backhaul business from the North kept rates at a firm level. A 63,000-dwt fixing delivery Singapore for a trip via Indonesia to WC India at $17,000. Buoyed with stronger demand from South America, rates from the Indian Ocean also pushed up. A 62,000-dwt was heard to have fixed delivery Port Elizabeth trip to China at around $19,000 plus $900,000 ballast bonus.

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Baltic Exchange Shipping Insights

Period cover was sort, although again this seemed to ease as the week progressed. A 63,000-dwt open Mumbai was fixed for short period in the mid $14,000s whilst a similar size vessel open Veracruz fixed for 9-11 months trading at $15,000.

Handysize

Overall, it was a positive week, with freight rates rising across most loading regions. While reported activity remained limited, the Continent–Mediterranean market continued to show gradual improvement, with sentiment largely positional. For example, a 38,000-dwt open in the Western Mediterranean was fixed for an inter-Mediterranean trip at $12,000.

The South Atlantic and US Gulf markets maintained their strength, driven by firm sentiment and steady demand, resulting in firmer rates. Notable fixtures included a 39,000-dwt fixed from North Brazil to the Western Mediterranean at $14,600, and another 39,000-dwt placed on subjects for a trip from SW Pass to Cristobal with agricultural products at $17,000.

Likewise, the Asian market remained active and positive, underpinned by strong cargo flows and limited vessel availability. A 40,000-dwt was fixed from Chittagong to the Continent with steels at $13,000. Period interest was relatively active in both basins: a 35,000-dwt open Mobile was placed on subjects for a short period at $11,500, while a 37,000-dwt open Dammam was fixed for a short period at $12,500.

Clean

LR2

LR2 freight in the MEG recovered by mid-week to then plateau. The TC1 75kt MEG/Japan index climbed 13.06 points to WS125. A TC20 90kt MEG/UK-Continent trip also went from $3.38mill to $3.65mill.

West of Suez, Mediterranean/East LR2’s held completely flat this week at $2.94m for a TC15 Baltic description voyage.

LR1

MEG LR1’s were stable this week. The TC5 55kt MEG/Japan index took pause at WS145 mid-week after several reported charterers at the level, its currently assessed at WS143.44. A voyage west on TC8 65kt MEG/UK-Continent managed to tick up to the tune of $114,270 to $2.93mill.

On the UK- Continent LR1 freight continued unmoved again. The TC16 60kt ARA/West Africa index remained at the WS111 all week.

MR

MRs in the MEG managed to add some value again this week. The TC17 35kt MEG/East Africa index climbed 5.72 points to WS221.79. This corresponds to $22,495 /day on Baltic round trip description.

UK-Continent MRs improved significantly this week. The TC2 37kt ARA/US-Atlantic coast went from WS95 to WS119.38. The Baltic Time Charter equivalent round trip, as a result over doubled to $8,863 /day.

USG MR freight sunk again this week. The TC14 38kt US-Gulf/UK-Continent trip dipped another 23.57 points to WS112.14. A Caribbean trip on TC21, 38kt US-Gulf/Caribbean was also finally assessed 10% lower than this time last week at $564,286.

The MR Atlantic Triangulation Basket TCE went from $19,470 to $17,946.

Handymax

The Mediterranean Handymax of TC6, 30kt Cross Mediterranean, spiked 46 points to WS178.06 mid-week to then resettle to WS166.11 at time of writing. Up on the UK-Continent the TC23 30kt Cross UK-Continent climbed 23.33 points to WS150.

VLCC

The resurge in the VLCC market continued modestly this week. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) ultimately ticked up 3.55 points to WS53.2 corresponding to a daily round-trip TCE of $32,978.

In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) held in the low WS50’s and is currently marked at WS53.06 giving a round voyage TCE of $33,525 per day. In the US Gulf region, the rate for the TD22 route of 270,000 mt US Gulf to China has gained $280,556 to $7,527,778 which shows a daily round trip TCE of $37,618.

Suezmax

In the Suezmax market, there was also a welcome upturn in freight levels. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) came up 8.11 points since last Friday to WS89.22 which translates into a daily round-trip TCE of $32.192. The TD27 route (Guyana to UK Continent basis 130,000 mt) added about 4.25 points to WS82.42 meaning a daily round trip TCE of a hair under $30,000. The TD6 route of 135,000 mt CPC/Augusta was raised by 6.72 points to WS97.11 giving a daily TCE of a little over $31,300. In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) climbed by 1 point to WS96.11.

Aframax

In the North Sea market for the 80,000 mt Cross-UK Continent route (TD7) the rate came down another 3.75 points to close to WS114.58 giving a daily round-trip TCE of about $25,419 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) managed recover this week, adding 8.5 points over the week to WS136.22 (basis Ceyhan to Lavera, that shows a daily round trip TCE of a little over $30,000).

Across the Atlantic, rates softened for the short local voyages. The 70,000 mt East Coast Mexico/US Gulf route (TD26) marked 12.22 points lower to WS129.72 and the 70,000 mt Covenas/US Gulf route (TD9) is now assessed at WS129.06 (a drop of 12.44 points). This translates into a daily round-trip TCE in the low $20,000s.

The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) has been assessed 15.28 points lower to WS124.72 giving a round trip TCE basis Houston/Rotterdam of about $25,100 per day.

LNG

The LNG market softened this week across most major routes, as vessel availability improved and activity levels moderated.

On the BLNG1 Australia–Japan route, rates for 174k cbm vessels dropped $700 to $38,900 per day, while 160k cbm ships fell $1,100 to $22,500, reflecting reduced short-term demand and a longer tonnage list.

The BLNG2 US Gulf–Continent route showed some divergence, with 174k cbm tonnage increasing $700 to $33,600 per day, even as the 160k cbm rate slipped $100 to $20,100.

The BLNG3 US Gulf–Japan route continued to slide, down $500 to $41,800 for 174k cbm vessels and $1,300 to $25,500 for 160k cbm units, amid slower chartering activity and an increasingly balanced market outlook.

Time charter levels fell in tandem. The six-month TC rate dropped sharply by $2,800 to $52,700 per day. One-year rates decreased $700 to $49,400, while three-year levels eased $800 to $61,100, reflecting a broader cooling in sentiment and expectations.

LPG

The LPG market posted a mixed performance this week, with activity in the Middle East remaining subdued while the Atlantic basin saw firmer sentiment and higher rates.

On the BLPG1 Ras Tanura–Chiba route, rates edged up by $0.75 to $80.08 per metric tonne, though gains were capped as charterers remained resistant to pushing above the $80 threshold. TCE earnings rose by $1,111 to $66,326 per day.

In the Atlantic, momentum picked up. The BLPG2 Houston–Flushing route jumped by $2.75 to $75.25, with TCE earnings climbing $3,397 to $81,133 per day, as discussions moved into higher territory amid stronger transatlantic interest.

The BLPG3 Houston–Chiba route saw the sharpest gains, rising $5.83 to $136.50 per metric tonne. Corresponding TCE returns surged by $4,876 to $63,913 per day, reflecting robust demand and tightening availability on longer-haul eastbound voyages.

Container

Container freight rates from China to the US have dropped over past weeks, returning to pre-tariff levels.

FBX01 (China/East Asia – USA West Coast) ended the week at $2,328/FEU, down $18/FEU from last Friday but down $3,541 from this time last month. FBX03 (China/East Asia – USA East Coast) is today at $4,224/FEU down $656 compared with last Friday and down $2,961 from this time last month. Analysts cite excess capacity, blank sailings, and weak demand as key factors which are likely to continue for the rest of the year. While Asia–Europe rates remain firm FBX11 (China/East Asia – North Europe) ended the week at $3,653/FEU up $195 from Friday last week, rates here are under pressure too and FBX13 (China/East Asia – Mediterranean) ended the week at $3,459/FEU down $309 from last week. The backhaul to FBX11, FBX12 (North Europe - China/East Asia) finished the week at $454/FEU, up $66 from last week. Meanwhile, Vietnam and India are gaining from diverted US-bound volumes, as China’s exports dip amid ongoing tariff unpredictability and geopolitical volatility.

This report is produced by the Baltic Exchange. (All currencies are in US dollars.)

The Baltic Exchange, a wholly-owned subsidiary of Singapore Exchange, is the world’s only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 650 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.

For daily freight market reports and assessments, please visit www.balticexchange.com. The report is also available online at bt.sg/baltic.