Baltic Exchange Shipping Insights

Capesize

The Capesize market experienced a week of two halves, with steady gains early on followed by a loss of momentum as sentiment turned softer. The BCI 5TC opened at $23,453 on Monday, peaked midweek at $24,252, before slipping and closing the week at $23,216.

Firm demand in the Pacific, where miners remained active, supported early gains with rates pushing beyond $9.50 on C5. In contrast, the South Brazil and West Africa to China routes struggled to gain traction, with limited inquiry and softer C3 fixtures reflecting a lack of fresh demand.

The North Atlantic initially found support from firmer transatlantic and fronthaul fixtures, but sentiment eased toward the week’s end amid thinner activity. Although underlying demand remained firm and continued to underpin the market, sentiment was tempered by fresh geopolitical headlines as China announced new port fees on US-linked vessels in retaliation for similar US measures, marking an escalation in trade tensions.

Panamax

After an inauspicious opening to the week, activities in the Panamax market slowly but surely improved as confidence grew in both basins. The North Atlantic grew in owner’s favour throughout the week with solid demand see ex US Gulf and US east coast load both for fronthaul and trans-Atlantic business.

South America saw a brief rally mid-week for end October arrival dates, with reports of an 81,000-dwt achieving $17,500 delivery retro Singapore for a trip via EC South America redelivery Singapore-Japan. Following various holidays this and end of last week, Asia returned with increased confidence with a surge of fresh demand particularly ex NoPac creating quite a stir. $16,000 was achieved several times for said run on 82,000-dwt delivery China.

Demand ex Australia remained steady all week and rates improved steadily rather than spectacularly as fundamentals edged towards owners having the upper hand. Period activity included reports of an 82,000-dwt delivery SE Asia fixing at $15,500 basis 10/12 months.

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Ultramax/Supramax

With widespread holidays in Asia during the week, it was rather poor week for the sector as limited fresh inquiry and a build-up of prompt tonnage kept rates in check. The recent strong demand from the US Gulf came to an end and rates fell away. Similarly, the South Atlantic lacked impetus, a 63,000-dwt heard fixed in the mid $15,000s plus mid $500,000s ballast bonus from EC South America to SE Asia.

The Continent did, however, remain robust with scrap demand, a 63,000-dwt fixing in the low $30,000s from North Continent to the East Mediterranean. In Asia, it was a slow start, although as the week came to a close a slight air of optimism was felt. 

Backhaul remained limited although a 63,000-dwt was heard fixed delivery North China trip to West Africa at $13,000. Elsewhere a 61,000-dwt was fixed basis delivery Mongla for a trip via South Kalimantan redelivery WC India in the mid $14,000s.   

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Baltic Exchange shipping insights

Handysize

This week, the market showed a mixed performance with only minor movements across both basins. The Continent and Mediterranean regions maintained their positive tone, with rates edging slightly higher and the market remaining well supported. For example, a 38,000-dwt vessel was fixed for a trip from Amsterdam via the UK to the East Mediterranean with scrap at $25,500.

In the South Atlantic and US Gulf, conditions appeared balanced, with steady demand and modest rate improvements. Reported fixtures included a 36,000-dwt open at Barranquilla on Oct 6 fixed for a trip from Vila do Conde to Norway with alumina at $25,000, and a 40,000-dwt fixed delivery Southwest Pass Oct 11 for an inter-Caribbean trip at $23,500.

In Asia, the market remained quiet due to holidays in China and South Korea, though rates held largely steady with no major change in fundamentals. A 40,000-dwt reported fixed for a trip delivery Ganyu via Japan to Manzanillo with steel coils at $14,000.

Clean

LR2

LR2 freight levels dipped this week in the MEG with reports of low inquiry levels. The TC1 75kt MEG/Japan index dropped from WS118.33 to WS108.06 over the course of the week, the corresponding TCE returns went from $22,954/day to $19,684/day basis Baltic Description.

A voyage west on TC20 90kt MEG/UK-Continent also came off. The index went down by $347,500 to $2.99mill. The TC15 80kt Mediterranean/East trip softened this week to $3.05mill (-$130,000).

LR1

MEG LR1s also lost value this week. The TC5 55kt MEG/Japan index started at WS121.88 and slipped to WS113.3 by end of the week. A voyage west on TC8 65kt MEG/UK-Continent ended the week assessed $264,290 lower at $2.53mill. 

On the UK-Continent, LR1 freight held resolute again at the WS115 level on the TC16 60kt ARA/West Africa index.

MR

MR freight in the MEG managed to remain level despite the larger sizes in the region softening. The TC17 35kt MEG/East Africa index hovered around the WS175 level all week.

On the UK-Continent, MRs eventually came off after holding on the WS115 level for a few days. The TC2 37kt ARA/US-Atlantic Coast index is currently marked at WS103.44 (-15.94). The Baltic TCE for the run ended up at $6,739/day at this level. 

In the US Gulf, MR rates dropped dramatically mid-week to then pause. The TC14 38kt US-Gulf/UK-Continent run began at WS214.64 and fell mid-week to just over WS180 where it currently lies. The round-trip TCE earnings dropped accordingly from $31,000/day to $24,363/day.

The Caribbean trip on TC21, 38kt US-Gulf/Caribbean, sunk by 17% this week to $896,429. The Baltic TC24 38kt US-Gulf/Chile index also came down from $2.5mill to about $2.27mill. The MR Atlantic Triangulation Basket TCE went from $37,975/day to $30,013/day.

Handymax

In the Mediterranean, Handymaxes on TC6, 30kt Cross-Mediterranean, regained a little over 23 points to WS153.06 with Baltic TCE of circa $12,700/day. The TC23 30kt Cross UK-Continent route softened from WS160.56 to WS151.94.

VLCC

The VLCC markets responded in different ways this week with the Middle East and West Africa losing ground, but the US export market recovered. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) fell back over 10 points by mid-week, however by Thursday had recovered 3 points to WS72.17, which corresponds to a daily round-trip TCE of $56,800.

In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) had slipped to mid-WS70s at the midweek point and recovered 3 points on Thursday to WS78.31, giving a round voyage TCE of $64,220.

The US Gulf to China (TD22) market is arguably controlling the strength of the other markets while owners seem to be “committing” to ballasting from the East to the West, and the rate firmed by over $687,000 to almost $10,300,000, which shows a daily round trip TCE of around $62,960.

Suezmax

In the Suezmax sector, the market remains firm with some gains seen in the Atlantic markets. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) is 7 points firmer than last Friday at WS106.39, which translates into a daily round-trip TCE of $47,770.

The TD27 route (Guyana to UK Continent basis 130,000 mt) also increased by 7 points to WS102.78, meaning a daily round trip TCE of a little over $45,200. The TD6 route of 135,000 mt CPC/Augusta moved up 1.5 points to WS141.22, giving a daily TCE of about $71,700.

In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) is still hovering around the WS100 level.

Aframax

In the North Sea, the rate for 80,000 mt Cross-UK Continent route (TD7) remained flat at the WS140 mark, giving a daily round-trip TCE of just shy of $50,400 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) improved by 7.5 points to nearly WS158 (basis Ceyhan to Lavera, that shows a daily round trip TCE of just over $42,150).

Across the Atlantic, the market turned seemed relatively steady. The 70,000 mt East Coast Mexico/US Gulf route (TD26) lost a point to the WS145 mark (giving a daily round-trip TCE of a little over $30,000) and the 70,000 mt Covenas/US Gulf route (TD9) remained around the WS142 level (translating into a daily round trip TCE of just under $28,900).

The rate for the transatlantic route of 70,000 mt US Gulf/UK Continent (TD25) gained 8 points to around WS157.5 giving a round trip TCE basis Houston/Rotterdam of about $39,400 per day.

On the Vancouver exports, TD28 (80,000 mt crude oil Vancouver to China) slipped back $75,000 to $2,825,000 and TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point off the USWC) remained within the WS190-192.5 region.

LNG

It has been a quiet week in the LNG market, with activity levels subdued and rates largely trading sideways. Limited fresh inquiry and balanced tonnage availability have kept sentiment flat, as both charterers and owners wait for clearer market direction.

On the BLNG1 Australia-Japan route, 174k cbm vessels eased $600 to $24,200 per day, while 160k cbm tonnage slipped $200 to $13,100 per day, reflecting muted Pacific activity. The BLNG2 US Gulf-Continent route saw marginal declines, with 174k cbm earnings down $500 to $21,800 per day and 160k cbm vessels off $400 to $10,600 per day. Transatlantic interest remains limited, with little change in positioning.

On the BLNG3 US Gulf–Japan route, 174k cbm vessels lost $1,200 to finish at $25,200 per day, while 160k cbm ships slipped $600 to $12,500 per day. Longer-haul sentiment remains soft as end-user demand and new spot fixtures remain thin.

Time charter levels were mostly stable. The six-month rate held at $29,900 per day, the one-year term eased $750 to $33,500, and the three-year benchmark was unchanged at $50,500 per day, reflecting a steady but inactive market tone.

 LPG

It has been a largely static week in the LPG market, with rates holding steady through to midweek before softening sharply on Thursday. Freight gave way to bearish sentiment amid high US inventory levels, fuelling expectations that US prices could ease further, particularly following last week’s CP reduction.

On the BLPG1 Ras Tanura-Chiba route, rates slipped $3.25 to $64 per tonne, with TCE earnings down $3,907 to $49,749/day. The early-week stability gave way to a rising tonnage list. The BLPG2 Houston–Flushing route followed a similar pattern, falling $4.50 to $69 per metric tonne, while TCE returns declined $6,785 to $75,176/day. Ample US supply and muted transatlantic arbitrage opportunities weighed on sentiment.

On the BLPG3 Houston-Chiba route, rates fell $8.17 to $125.83 per tonne, with TCE earnings dropping $6,791 to $56,852/day. The long-haul market faced increased headwinds as arbitrage economics still remain challenging.

Container

Rates continue to come under pressure following the recent trend but at a steady pace with the drop slowing.

The FBX headline rate is down 2% over the week. FBX01 falling from $1522 to $1431 down 6%, FBX03 $3283 to $3013 down 8%, FBX11 $1760 to $1721 down 2%, and FBX13 $2177 to $2108 down 3%.

We expect the trend to continue in the immediate future, however today’s announcement from China about additional port fees for US ships is still being digested and could have ripple effects in the market.

US container imports fell in September, and Chinese imports to the US were especially weak. The feeling is that the tariff environment (especially changes under the Trump administration) is suppressing or delaying trade flows, which is putting downward pressure on volumes.

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.

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For daily freight market reports and assessments, please visit www.balticexchange.com. 

The report is also available online at bt.sg/baltic.