Baltic Exchange Shipping Insights

Capesize

The Capesize market experienced a mixed and somewhat volatile week, marked by early weakness followed by a midweek rebound and gradually firmer sentiment, particularly in the Atlantic.

In the Pacific, despite steady miner activity on C5, freight rates fluctuated, slipping as low as $9.55, rebounding midweek to $10.40 before easing back to $10.00 and eventually ending the week at $10.60. In contrast, the South Brazil and West Africa to China markets saw steady activity.

While early fixtures pointed to softer levels in the low $23s on C3, midweek gains and healthy cargo flow provided support, with standard vessels continuing to command a premium as fixtures climbed to $25.00 by Friday. The North Atlantic was the standout performer, gaining momentum midweek after a quiet start.

Both Transatlantic and fronthaul routes firmed on the back of fresh demand and tightening supply, with Transatlantic rates rising from around $25,000 to $30,000 and fronthaul levels reaching the low $50,000s. The BCI 5TC posted a net weekly gain, rebounding from early declines to close at $27,716.

Panamax

After last week’s rather subdued market, it was a more positive week overall for the Panamax sector. Stronger levels of enquiry were seen from the South Atlantic, despite a lack of interest from the North Atlantic, owners remained optimistic throughout the week. The demand from South America was the P6 route achieving in the mid-upper $14,000s.

However, limited fresh enquiry from the North Atlantic saw an 83,000-dwt fixing from the United Kingdom via Narvik redelivery Continent at $17,500. With the extra demand from the South Atlantic, gradually better levels were seen for Southeast Asian business, with an 82,000-dwt fixing delivery Tanjung Bin via Indonesia redelivery Japan at $18,000.

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There was also a reasonable amount of activity from Australasia. An 82,000-dwt fixing delivery China via EC Australia redelivery India at $14,750. Period activity remained a slightly relaxed affair, but an 82,000-dwt open China fixed 3/6 months trading redelivery worldwide in the mid $14,000s.

Ultramax/Supramax

Although it was generally a positive affair overall, the Atlantic could be described as rather positional during the course of the week. Demand returned at pace from the US Gulf drawing owners interest from both the Continent and Western Mediterranean.

A 60,000-dwt was heard fixed from the US Gulf for a trip Singapore-Japan at $27,750 while a 58,000-dwt was fixed delivery SW Pass trip to the East Mediterranean at $26,000. By contrast the South Atlantic struggled to gain much traction, with a 63,000-dwt was heard fixed from Santos to Chittagong at $14,000 plus $400,000 ballast bonus.

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Baltic Exchange Shipping Insights

After a relatively slow start from Asia, demand picked up both from Southeast Asia and further north, with a 56,000-dwt fixing delivery South China via Vietnam redelivery Bangladesh at $19,500. Increased demand was also seen in the Indian Ocean, albeit based around South Africa. A 64,000-dwt fixing delivery Port Elizabeth for a trip to China at $21,000 plus $210,000 ballast bonus.

Handysize

The market delivered a mixed performance this week, with only modest movements across both basins. In the Continent and Mediterranean, some fresh demand and increased activity were noted, although rates generally held around last-done levels.

For instance, a 32,000-dwt fixed a trip via France redelivery Turkey with scrap at $9,500. The South Atlantic remained relatively soft, with limited information emerging, while the US Gulf retained firm fundamentals, supported by a steady flow of cargo.

A 34,000-dwt was fixed delivery SW Pass 16–24 August for redelivery to WC Central America at $15,750. On the Asian front, despite limited fixture reports, the market sentiment maintained a firm tone. A 38,000-dwt fixed delivery Cigading for trip to redelivery Continent at $15,000.

Clean

LR2

LR2 freight in the MEG continued to firm modestly this week. The TC1 75kt MEG/Japan index added 5.28 points to WS153.06. A TC20 90kt MEG/UK-Continent trip also ticked up over the $4 million mark to $4.16 million. West of Suez, Mediterranean/East LR2’s continue to trundle along around $2.9 million for a TC15 Baltic description voyage for the moment.

LR1

MEG LR1’s firmed with some gusto this week. The TC5 55kt MEG/Japan index added a welcome 20.31 points to WS175.94. A voyage west on TC8 65kt MEG/UK-Continent also moved up $185,705 to $3.32 million. On the UK-Continent LR1 freight remained unmoved again. The TC16 60kt ARA/West Africa index is still around WS112.5.

MR MR freight in the MEG climbed gently this week. The TC17 35kt MEG/East Africa index went from WS243.57 to WS252.14, corresponding to a little under $25,000/day on Baltic round trip description.

UK-Continent MRs took off dramatically late in the week. The TC2 37kt ARA/US-Atlantic coast went from WS109.69 mid-week to WS120.94 overnight. This saw the Baltic timecharter equivalent round trip for the run to jump from $6,428 to $10,039/day.

USG MR freight has also shot up this week. The TC14 38kt US-Gulf/UK-Continent trip has jumped from WS167.5 to WS199.29 following a flurry of activity later in the week. A Caribbean trip on TC21, 38kt US-Gulf/Caribbean also saw a striking rise of 48% to $1.13 million. The MR Atlantic Triangulation Basket TCE went from $26,573 to $34,909.

Handymax

The Mediterranean Handymax of TC6, 30kt Cross Mediterranean continued along the mid-high WS180’s all week. The TC23 30kt Cross UK-Continent was also relatively stable, floating around the high WS140’s to low WS150’s all week.

VLCC

The VLCC turned around this week with rates improving on all Baltic routes. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) climbed 12 points to WS56.65 corresponding to a daily round-trip TCE of $37,158.

In the Atlantic market, the rate for 260,000mt West Africa/China (TD15) increased by 6 points to WS56.31 giving a round voyage TCE of $37,398 per day. In the US Gulf region, the rate for the TD22 route of 270,000mt US Gulf to China regained over $436,000 to just shy of $7,100,000 which shows a daily round trip TCE of about $34,200.

Suezmax

In the Suezmax market, rates significantly improved in the West, although not so much in the Middle East. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) shot up 34 points to WS120.56, which translates into a daily round-trip TCE of $55,657.

The TD27 route (Guyana to UK Continent basis 130,000 mt) followed suit, gaining 38 points to WS120.56 meaning a parity with TD20 in the daily round trip TCE of $55,532.

The TD6 route of 135,000 mt CPC/Augusta improved by 26 points to a fraction below WS130 giving a daily TCE of more than $61,100. In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) gained two points to the WS98 level.

Aframax

In the North Sea market for the 80,000 mt Cross-UK Continent route (TD7), the rate gained a point to WS119.58 giving a daily round-trip TCE of $31,251 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) slipped two points to WS148.83 (basis Ceyhan to Lavera that shows a daily round trip TCE of just shy of $37,800).

Across the Atlantic, the market peaked mid-week and started a downhill journey, which may continue into next week. The 70,000 mt East Coast Mexico/US Gulf route (TD26) lost 14 points to about WS167 (giving a daily round-trip TCE of about $39,200) and the 70,000 mt Covenas/US Gulf route (TD9) lost 19 points to about WS157 (translating into daily round trip TCE of around $34,100).

The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) fell 24 points since last Friday to WS151.11, giving a round trip TCE basis Houston/Rotterdam of $36,160/day.

Two new routes went ‘live’ this week: TD28 (80,000 mt crude oil Vancouver to China) and TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point on the US West Coast). TD28 was published on Thursday at $1,850,000, which is $87,500 down for the week, while TD29 was published on Thursday at WS133.75, which is a loss of about three points for the week.

LNG

It has been a quiet week in the LNG market, with activity levels subdued and rates broadly trading sideways. While some routes saw marginal gains, overall sentiment remained stable, with limited fresh drivers in the spot market.

On the BLNG1 Australia–Japan route, rates for 174k cbm vessels eased $400 to $33,000/day, while 160k cbm earnings were unchanged at $22,200/day, reflecting muted Pacific activity and ample tonnage availability.

The BLNG2 US Gulf–Continent route firmed, with 174k cbm rates rising $600 to $35,300/day and 160k cbm vessels up $200 to $22,000/day. The BLNG3 US Gulf–Japan route posted modest gains for larger ships, with 174k cbm vessels increasing $200 to $42,600/day. However, 160k cbm tonnage slipped $200 to $25,900/day as longer-haul demand remained patchy.

Timecharter levels softened slightly. The six-month TC rate fell $1,000 to $46,250/day, while the one-year rate eased $275 to $45,975, and the three-year term was down $50 to $56,950, signalling a steady but unhurried market backdrop.

LPG

The LPG market saw strong gains this week, with sentiment boosted by mounting congestion in the Neo Panama Canal. The potential for prolonged delays is raising the likelihood that a significant share of vessels ballasting to the US will divert via the Cape of Good Hope, which would increase tonne-miles and tighten tonnage lists further. On the BLPG1 Ras Tanura–Chiba route, rates climbed $3.75 to $88.58 per metric tonne.

TCE earnings rose $4,707 to $76,115/day, supported by steady Middle East demand and firmer sentiment across the market. The BLPG2 Houston–Flushing route increased $5.75 to $83.13, with TCE returns jumping $9,753 to $94,445/day. Tightening Atlantic supply conditions, partly driven by the Panama Canal delays, provided a firm upward push.

The BLPG3 Houston–Chiba route recorded the sharpest move, gaining $10.00 to $149.83 per metric tonne. TCE earnings increased $8,512 to $74,814/day. Driven again by firmer sentiment in the Atlantic.

Container

This week, key container shipping routes have all lost some ground, with the headline Baltic Exchange Container Freight Index (FBX) dropping by $213 or approximately 9%. Ongoing tariff uncertainty continues to weigh on the market, particularly with speculation around a potential extension or development in the US-China trade talks.

Liner companies have persisted in blanking sailings to stabilise rates, which appears to be yielding results as the rate decline is moderating.

Major route moves this week saw FBX01 (China/East Asia – US West Coast) end the week at $1,941 per FEU, down $428 from last Friday. FBX03 (China/East Asia – US East Coast) closed at $3,505 per FEU, down $200 week-on-week. FBX11 (China/East Asia – North Europe) finished at $3,218 per FEU, a decrease of $239 and FBX13 (China/East Asia – Mediterranean) ended the week at $3,126 per FEU, down $80.

Market participants remain cautious as trade policy uncertainty lingers, although capacity management by carriers is helping to support rate levels amidst softer demand.

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.