Baltic Exchange Shipping Insights

Capesize

The week delivered a broadly positive performance for the Capesize market, with early strength in both basins before momentum tapered into a quieter finish.

The BCI 5TC climbed steadily from the high $27,000s to just over $30,000, reinforcing a firming tone despite Thursday’s (Nov 20) slowdown. The Pacific provided consistent support, underpinned by steady miner demand and some early-week weather-related tightening in North China.

Even so, fixtures largely held in the mid-to-upper $10.00s, keeping C5 relatively range-bound. The Atlantic was the main driver of the rally, with strong inquiry from South Brazil and West Africa to China pushing C3 into the mid-to-upper $24s, while tightening conditions in the North Atlantic lifted C8 progressively through midweek.

Firmer bids, increasing fixtures, and improving sentiment supported a solid upswing before activity tapered off towards the week’s close.

Panamax

The Panamax market strengthened through the week, with the BPI time-charter average rising from $16,986 on Monday to $17,204 by Thursday. Early softness in the Pacific eased as sentiment improved, though Tuesday saw quieter conditions and owners fixing on spot.

By midweek, both Atlantic and Pacific markets firmed, supported by tight regional tonnage and growing fronthaul demand, particularly from the US Gulf. This momentum carried through the week as bullish sentiment intensified, with Atlantic tightness and competing US Gulf and East Coast fronthaul demand driving rates higher.

Pacific levels also held firm, with owners increasingly offering above last-done, with numerous reported prompt tonnage’s fixing at firmer levels for both longer and shorter Pacific round voyages.    

Ultramax/Supramax

Overall, the market had a mixed week. Activity from the US Gulf remained limited, with rates softening and the South Atlantic losing momentum amid a flat outlook.

A 58,000-dwt open Bejaia was fixed delivery Brazil to the West Mediterranean with grains at $28,000, while a 64,000-dwt placed on subjects for delivery NOLA to Japan with grains at $32,000. Across the Continent and Mediterranean, activity remained muted, and sentiment was largely positional.

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In Asia, the week was generally balanced. Despite spot cargoes being largely covered and the cargo book shortening, owners continued to be in demand, helping to close the rate spread. A 50,000-dwt fixed delivery Yokohama for a trip via Kashima to the Arabian Gulf–WC India at $16,500.

Period coverage was also active, with a 64,000-dwt open Fangcheng fixed for 5–7 months at $16,500, while a 61,000-dwt open Khalifa Nov 20 reportedly fixed for a short period in the mid-$16,000s.

Handysize

The market experienced a quiet week, with little new information coming through. Conditions in the Continent and the Mediterranean remained steady, with reports of some fresh inquiries and a shortage of prompt tonnage.

A 34,000-dwt open Aabenraa fixed for a trip delivery Dordrecht to East Mediterranean with scrap at $18,000. In contrast, both the South Atlantic and the US Gulf were very quiet, with limited reported activity and flat rates.

A 38,000-dwt fixed for a trip delivery Rio Grande to Veracruz at $19,000, while a 41,000-dwt open Houston Nov 22-25 fixed delivery SW Pass trip to China with petcoke at $26,500.

In Asia, the market had a generally balanced day, with most sources describing conditions as quiet and rates holding steady for the time being. A 37,000-dwt fixed for a trip delivery Yantai to Singapore with bulk slag at $10,000.

Clean

LR2

MEG LR2 freight continued it modest firming this week. The TC1 75kt MEG/Japan index added another 5 points of value to WS150, taking the corresponding TCE to a fraction over $36,000/day Baltic description round-trip.  

A voyage west on TC20 90kt MEG/UK-Continent managed to tick up again from $3.94 to $4.16 million.

The TC15 80kt Mediterranean/East run saw the index levelled off this week, a $37,500 improvement took index to exactly $3.65 million.

LR1

MEG LR1 also saw freight levels improve this week. The TC5 55kt MEG/Japan index climbed from WS144 to WS153.

A run west on TC8 65kt MEG/UK-Continent ended the week $135,000 higher at $3.16 million.

On the UK-Continent, LR1 freight remained flat this week. The TC16 60kt ARA/West Africa index settled an incremental 3.5 points higher at WS132.

MR

MR freight in the MEG shot up with gusto at the end of this week. The TC17 35kt MEG/East Africa index came up of its WS215-220 floor, adding 27.5 points to WS246 at time of writing.

On the UK-Continent, MRs have continued their recovery this week. The TC2 37kt ARA/US-Atlantic Coast index climbed 34 points to WS165. The Baltic TCE for the trip has subsequently shot up another 54% to just under 18,400/day.

In the US Gulf, MRs seemed to have taken pause this week. The TC14 38kt US Gulf/UK-Continent voyage floated between WS175 and WS185 all week, keeping the Baltic round-trip TCE for the run around $22,000-25,000/day.

The Caribbean run on TC21, 38kt US-Gulf/Caribbean, dipped midweek to $682,000, but has since returned to $825,000. The MR Atlantic Triangulation Basket TCE went from $34,085/day to $37,435/day.

Handymax

In the Mediterranean, Handymaxes on TC6, 30kt Cross-Mediterranean index saw a significant upturn with the index rising from WS185 to WS228 and to corresponding Baltic TCE rising 53% to $32,700/day round-trip.  

The TC23 30kt Cross UK-Continent route climbed 12 points to WS204.

VLCC

The VLCC market rates took another step up this week. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) took a 4-point rise to WS133.94, which corresponds to a daily round-trip TCE of $131,252 for the standard Baltic VLCC.

In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) took a small dip early in the week, but fought back towards the end, back to where it left off last Friday at WS119, giving a round voyage TCE of a little over $113,000.

The US Gulf to China (TD22) market started to dip, losing over $56,000 for the week to $13,787,667 which shows a daily round-trip TCE of $93,873.

Suezmax

In the Suezmax sector, the market remains firm, however the rates have decreased in the Atlantic, but firmer in the Mediterranean.

The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) lost 3 points to WS156.39, which translates into a daily round-trip TCE of $78,751, while the TD27 route (Guyana to UK Continent basis 130,000 mt) lost 4.5 points to WS154.44, giving a daily round trip TCE of about $77,563.

The TD6 route of 135,000 mt CPC/Augusta increases by 21 points to WS185, meaning a daily TCE of a little over $107,500. In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) was 1 point stronger than last week at WS113.5.

Aframax

In the North Sea, the rate for 80,000 mt Cross-UK Continent route (TD7) remained around the WS157 mark, giving a daily round-trip TCE of about $65,100 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) had a significant reduction, losing 26 points week on week to WS187 (basis Ceyhan to Lavera, that shows a daily round-trip TCE of just over $55,000).

Across the Atlantic, the market continued to ease for the 3 Baltic routes. The 70,000 mt East Coast Mexico/US Gulf route (TD26) lost almost another 10 points to end up at about WS202.5 (giving a daily round-trip TCE of a little over $54,500) and the 70,000 mt Covenas/US Gulf route (TD9) was reduced by over 8 points to WS200 (translating into a daily round-trip TCE of about $50,500).

The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) gave up another 9 points closing Thursday at WS203.33, which gives a round-trip TCE basis Houston/Rotterdam of a little over $55,700 per day.

On the Vancouver exports, TD28 (80,000 mt crude oil Vancouver to China) recovered by $112,500 to $3,375,000, while TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point off the USWC) took a big step of over 20 points to the WS252.5-255 range.

LNG

The LNG spot market strengthened further this week, with 2-stroke tonnage remaining extremely tight in the Atlantic, driving significant gains on all major routes.

On the BLNG1 Australia–Japan route, 174k cbm vessels rose $4,200 to $79,200/day, while 160k cbm ships gained a much stronger $11,000 to $61,400/day.

The BLNG2 US Gulf–Continent route saw the largest jump of the week, with 174k cbm rates soaring $25,000 to $129,000/day. Meanwhile, 160k cbm vessels increased $20,000 to $93,000/day, reflecting exceptionally tight 2-stroke availability in the Atlantic Basin.

The BLNG3 US Gulf–Japan route also strengthened considerably, with 174k cbm earnings up $17,600 to $125,000/day and 160k cbm tonnage gaining $14,000 to $90,000/day.

Time-charter sentiment followed the spot market. The six-month rate increased $3,550 to $37,950/day, the one-year term rose $3,750 to $37,750/day, and the three-year period firmed $2,500 to $54,500/day.

LPG

The LPG market posted a firmer week overall, with activity picking up early on in the Middle East while fixing in the West slowed. Despite the quieter tone in the Atlantic, sentiment remained steady to slightly firm as continued inquiry in the East supported levels.

On the BLPG1 Ras Tanura–Chiba route, rates climbed $5.67 to $70.17 per metric tonne, with TCE earnings rising $6,485 to $57,687/day, driven by a more active start to the week in the Middle East and tightening prompt availability.

The BLPG2 Houston–Flushing route saw only modest movement, up $1.13 to $65.88 per metric tonne, while TCE returns increased $1,081 to $69,965/day as Western fixing activity eased, keeping gains more limited.

The BLPG3 Houston–Chiba route inched up $0.50 to $120.33 per metric tonne, with daily earnings up $489 to $53,334/day. With the West cooling, improvements remained marginal.

Container

As we approach December, we traditionally see a slowdown in container throughput as shippers have stocked up for Christmas and will only look at replenishing their inventories in Q1.

Many carriers are contemplating a return to transiting the Red Sea next year, but we will have to see who makes the move first. This follows the Houthis’ announcement that they have suspended their attacks on commercial shipping.

GRIs were announced this week that from Dec 1, MSC FAK rate Asia to North Europe will be $3,200/FEU, and CMACGM announced from Dec 1 Asia to Med FAK rate will be $4,000/FEU. 

FBX01 (China/East Asia – USA West Coast) decreased by $914 this week, ending at $1,800. FBX03 (China/East Asia – USA East Coast) lost $817 week on week, ending the week at $3,034. FBX11 (China/East Asia – North Europe) remained flat all week at $2,457. FBX13 (China/East Asia – Mediterranean) has gained $101 week on week, ending at $2,934.

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

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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.