Baltic Exchange Shipping Insights

Capesize

POSITIVE sentiment was observed across both the Atlantic and Pacific basins throughout the week, with the exception of a brief pause on Thursday. The Capesize timecharter average closed at $25,457 on Friday, marking a gain of $1,944 week on week.

Sentiment appeared positive in the North Atlantic but activity remained limited overall. In the Brazil/West Africa region, the C3 route experienced increased mid-week activity. Cargoes loading in the second half of October was fixing at higher rates than those scheduled for the first half of the month. By week’s end, the laycan had fully shifted into October, and the C3 index mirrored seasonal trends typical for this time of year. However, closing at $23.59 is a softer level.

In the Pacific, the West Australia to China route was well supported by miners early in the week as the C5 index climbed to mid $10s but gradually dropped to $10.245. A transpacific round voyage was paying in the $26,000s for a duration of approximately 35 to 45 days.

Panamax

A week for the optimists in the Panamax sector with steady rises throughout the Atlantic and Asian markets, although we seemed to have reach a period of consolidation as the week ended. From the Atlantic basin, we saw decent levels of both grain and mineral demand versus a limited tonnage list, creating the perfect storm for owners, reports of mid $20,000s achieved for a trans-Atlantic trip via US Gulf delivery this side.

South America returned a less spectacular week with several deals concluded at mixed rates. Asia’s support was mostly NoPac centric, ably bolstered by solid mineral demand ex Australia and Indonesia enabling rates to climb from lower rates in recent weeks, rates via NoPac and Australia concluded a few times at $16,000 the high rate for the week.

Limited period deals concluded both fixed and index linked, the headline rate of $18,000 achieved on an 84,000-dwt delivery Singapore basis 4/6 months trading.

Ultramax/Supramax

A positional week overall as the Atlantic remained firm in pockets while the Asian arena in the south saw demand retract and rates ease a little. In the Atlantic, the main push came from the US Gulf, a 60,000-dwt fixing delivery Mobile for trip to India at around $32,000 level. Whilst similar size tonnage fixed a trans Atlantic run at $30,000. Fronthaul demand was seen from the South Atlantic, a 63,000-dwt fixing delivery Santos for a trip SE Asia at $16,750 plus $675,000 ballast bonus.

In Asia, a 63,000-dwt fixed delivery North China for a trip to Bangladesh at $22,000. Further south, a 57,000-dwt fixed delivery Singapore for a round voyage via Indonesia at $15,750. Activity was seen from the Indian Ocean, a 62,000-dwt fixing delivery South Africa for a trip to EC India at $21,000 plus $210,000 ballast bonus. Further north, a 58,000-dwt fixed delivery Salalah for a trip Vietnam at $14,500.

Handysize

The market displayed a mixed performance this week, with some regions holding steady while others recorded stronger gains. In the Continent and Mediterranean, activity was limited, with only marginal improvements as rates edged slightly higher than previous levels. For example, a 36,000-dwt was fixed for a trip delivery Skaw via Baltic redelivery Luanda at around $16,500.

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Baltic Exchange Shipping Insights

The South Atlantic maintained its momentum, showing balanced conditions with continued support, as a 37,000-dwt was reported fixed delivery Recalada to the Mediterranean with grains at $21,750. By contrast, the U.S. Gulf softened due to weaker demand, with a 37,000-dwt fixed delivery SW Pass to Algeria with grains at $19,500.

Meanwhile, Asia remained subdued, with fundamentals broadly stable and rates hovering near last-done levels, as a 40,000-dwt was fixed for a trip from Mundra to Sohar with steel pipes at $13,000.

Clean

LR2

LR2 freight in the MEG was volatile this week. The TC1 75kt MEG/Japan index moved up from WS156.06 to a high of WS157.89 before softening to WS142.78 by week’s end. A TC20 90kt MEG/UK-Continent trip slipped back $272,875 to $3.94 million.

West of Suez, Mediterranean/East LR2’s held relatively steady, ending the week $200,000 higher at $3.24 million for a TC15 Baltic description voyage. This kept the Baltic TCE round trip above the $12,000/day mark, finishing at $12,467/day.

LR1

MEG LR1’s softened after a firm start. The TC5 55kt MEG/Japan index reached WS160.31 midweek before easing back to WS154.38. A voyage west on TC8 65kt MEG/UK-Continent firmed slightly, finishing the week at WS46.10.

On the UK-Continent, LR1 freight edged down. The TC16 60kt ARA/West Africa index fell from WS119.88 to WS117.56.

MR

MR freight in the MEG trended softer this week. The TC17 35kt MEG/East Africa index opened at WS214.64, before closing at WS182.86, reflecting a steady decline.

On the UK-Continent, MRs moved down. The TC2 37kt ARA/US-Atlantic coast index losing 4.37 points over the week to WS114.38. This took the Baltic TCE round trip up to $8,755/day.

In the US Gulf, MR’s faced continued downward pressure. The TC14 38kt US-Gulf/UK-Continent run eased further, finishing at WS167.86 with the Baltic TCE sliding to $21,044/day. The Caribbean leg on TC21, 38kt US-Gulf/Caribbean, firmed as well, gaining another $231,429 to finish at $864,286. This increased the TCE to $32,305/day. The Baltic TC24 38kt US-Gulf/Chile index firmed, increasing $245,833 to close the week at $2.22 million.

The MR Atlantic Triangulation Basket TCE slipped further from $26,408 to $28,439.

Handymax

In the Mediterranean, Handymaxes of TC6, 30kt Cross Mediterranean, hovered around WS135 throughout the week, closing steady at WS135. The TC23 30kt Cross UK-Continent dipped slightly, ending the week at WS161.94.

VLCC

The VLCC markets improved dramatically mid-week and remain firm with potential further gains on the horizon. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) rose from last Friday’s WS76.5 to WS87 on Thursday which corresponds to a daily round-trip TCE of $74,338.

In the Atlantic market, the rate for 260,000mt West Africa/China (TD15) rocketed 17.5 points to WS92.81 giving a round voyage TCE of $80,878. In the US Gulf region, the rate firmed by over $1,000,000 to just break through the $10,000,000 mark which shows a daily round trip TCE of about $60,300.

Suezmax

In the Suezmax sector, the market continues to remain firm. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) is another 2 points higher than a week ago, at WS112.22 which translates into a daily round-trip TCE of $50,934.

The TD27 route (Guyana to UK Continent basis 130,000 mt) bounced back 3.5 points to WS112.06 meaning a daily round trip TCE of $50,625. The TD6 route of 135,000 mt CPC/Augusta remained around the WS142.5 mark giving a daily TCE of about $72,650.

In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) remained at the WS100 level.

Aframax

In the North Sea, the rate for 80,000mt Cross-UK Continent route (TD7) lost 7.5 points this week to WS121.67 giving a daily round-trip TCE of close to $32,800 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) made a meagre gain of 1.5 points to WS131.39 (basis Ceyhan to Lavera, that shows a daily round trip TCE of about $28,200).

Across the Atlantic, the market continued to make upward moves for the Baltic routes. The 70,000 mt East Coast Mexico/US Gulf route (TD26) gained 10 points to the WS171.39 (giving a daily round-trip TCE of $42,546) and the 70,000 mt Covenas/US Gulf route (TD9) improved by 8 points to WS166.25 (translating into a daily round trip TCE of just over $38,000).

The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) rose steadily by 21.5 points to WS176.11 giving a round trip TCE basis Houston/Rotterdam of $45,680 per day.

On the Vancouver exports, TD28 (80,000 mt crude oil Vancouver to China) fell back $12,500 to $1,862,500 and TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point on the USWC) rose 3 points to WS128.13.

LNG

It has been a steady week in the LNG market, with rates decreasing minimally across some routes as limited demand met steady vessel availability. The continued absence of fresh enquiry has left sentiment balanced as we move into mid/end October liftings.

On the BLNG1 Australia–Japan route, 174k and 160k cbm vessels remained flat at $31,700 per day and $18,800 per day respectively. Pacific activity remained muted, with little to absorb the available length in the basin.

The BLNG2 US Gulf–Continent route fell slightly, with 174k cbm earnings down $200 to $28,800 per day and 160k vessels remaining flat at $16,300 per day.

On the BLNG3 US Gulf–Japan route, 174k cbm ships eased $800 to $35,400 per day, while 160k cbm units again remained flat at $19,700 per day.

Period markets were also weaker. The six-month TC rate fell $1,550 to $36,750 per day, the one-year rate slipped $1,500 to $40,000, and the three-year term was down $500 to $54,500, reflecting softer sentiment across the board.

LPG

It has been a firmer week in the LPG market, with rates rising sharply as a flurry of new cargoes entered the market and the tonnage list remained tight.

The increased activity drove strong gains across all major routes.

On the BLPG1 Ras Tanura-Chiba route, rates rose $3.50 to $78.50 per metric tonne, with TCE earnings climbing $4,125 to $65,805 per day.

The BLPG2 Houston-Flushing route saw large improvements, with rates surging $8.75 to $85.00 per metric tonne. TCE earnings jumped $12,829 to $97,620 per day, reflecting active US Gulf exports and limited vessel supply in the Atlantic.

On the BLPG3 Houston-Chiba route, rates surged $16.83 to $154.33 per metric tonne, with TCE earnings up $13,585 to $79,353 per day. The long-haul market strengthened on the back of US-Asia flows and firming sentiment around constrained tonnage.

Container

As we reach mid-September we have seen another week of uncertainty over eventual tariffs pass by, during this week we have seen rates further stabilising after the big falls from the peaks we saw at the start of summer, the effects of carriers blanking and reducing services appear to have worked.

It was announced this week by CMACGM that they will not be adding a surcharge for US port calls as the new USTR port fees for Chinese linked tonnage come into effect in October, so it will be interesting to see if other carriers follow suit or go against the grain and introduce additional surcharges.

FBX01 (China/East Asia – USA West Coast) ended the week at $2,296/FEU, down $17/FEU from last Friday. FBX03 (China/East Asia – USA East Coast) ended the week at $3,291/FEU up $52 from last Friday.

FBX11 (China/East Asia – North Europe) ended the week at $2,608/FEU up $67 from last Friday. FBX13 (China/East Asia – Mediterranean) ended the week at $2,691/FEU down $227 from last Friday.