Baltic Exchange Shipping Insights

Capesize

The market closed the week on a softer footing, with the BCI 182 5TC easing from just under  $50,000 at the start of the week to $44,374, reflecting a clear loss of momentum as the week  progressed. Trading conditions were characterised by persistently thin liquidity, disrupted  participation due to Posidonia, and generally subdued miner engagement, which together  left the market vulnerable to downside pressure.

In the Pacific, sentiment weakened steadily  as the week unfolded, with a gradual erosion in C5 levels driven by limited cargo emergence  and a lack of consistent support from major miners. Fixtures progressively printed lower,  from mid-to-high $15 early in the week to a tick below $14 by the close.

The South Brazil  and West Africa to China market followed a similar, albeit more gradual, weakening trend,  with index dates on C3 drifting lower and spreads widening before settling into the low-to mid $36s range on later stems.

The North Atlantic initially showed relative resilience, briefly  supported by short-duration TA activity, but this strength faded as the week progressed and  sentiment softened in line with the broader market. Fronthaul activity remained notably quiet  throughout. 

Panamax-Kamsarmax

The week opened on a subdued note, influenced by regional holidays and Posidonia, with limited activity prompting many participants to reassess positions. Despite an early P5TC uptick, sentiment quickly softened as the week progressed.

In the Atlantic a growing tonnage list, particularly in the North Continent, combined with relatively limited mineral and grain  cargoes, placed downward pressure on rates. Owners gradually revised expectations lower,  especially for prompt positions, while fronthaul activity remained muted.

Pacific trade provided some initial support, driven by steady Indonesian and Australian exports, though sentiment became mixed midweek as bid levels weakened. While owners resisted significant  rate declines, this resulted in a widening bid-offer gap and limited fixtures.

As the week  progressed, broader negative momentum set in across both basins, with softer East Coast  South America demand and continued Pacific easing. Overall, declining indices reflected  persistent oversupply and subdued enquiry, leaving the market on a cautious footing  heading into the following week. 

Ultramax/Supramax

This week’s Supramax/Ultramax market developed gradually after a subdued start, with  Posidonia events in Athens and a holiday in Singapore limiting early momentum. Overall sentiment improved modestly as the week progressed, particularly in the Atlantic, where the US Gulf remained the key source of support.

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Baltic Exchange Shipping Insights

Brokers continued to report firmer rate ideas  from the Gulf and steady underlying activity in the South Atlantic, although much of the fixing  remained undisclosed. The Continent-Mediterranean market stayed broadly balanced.

In  Asia, conditions were initially mixed, with stronger demand in the north offset by pressure in the south due to prompt tonnage, but sentiment improved later in the week as fresh enquiry  returned. Notable fixtures included coal and grain business in both basins, alongside limited  short-period interest.

By week’s end, the 11TC average had edged up from $19,847 to  $20,067, reflecting a firmer but still cautious overall market tone.

Handysize

LR2 

The TC1 75kt MEG/Japan index dropped an incremental 6.39 points to WS510 this week.  

A voyage west also came down with the TC20 90kt MEG/UK-Continent index going from  $10.16 million to $9.87 million.

The TC15 80kt Mediterranean/East index came down a further $680,000 this week to $4.47  million with the corresponding TCE dropping 34% to $18,800/day on Baltic description round  trip. 

LR1 

The TC5 55kt MEG/Japan index was also assessed 6 points lower this week to WS540.  

A run west on TC8 65kt MEG/UK-Continent saw the index hold resolute all this week at $8.27 million.

MR 

The TC17 35kt MEG/East Africa index continued along at the WS730 level this week still  giving a little over $90,000/day on Baltic description round trip TCE. 

On the UK-Continent, MR freight was driven downward again this week. The TC2 37kt  ARA/US-Atlantic Coast index was marked 18 points less than last week at WS135, with the  Baltic TCE for the round trip now at $2,400/day. Returns have not been this low since  November 2024. 

In the US Gulf, MR freight levels continued to head upwards this week. The TC14 38kt US  Gulf/UK-Continent added 29 points to WS259 with the Baltic round trip TCE for the run up  now to $28,000/day.

The Caribbean voyage on TC21, 38kt US-Gulf/Caribbean also moved  up and over the $1 million threshold this week to $1.01 million with the corresponding TCE  climbing to its current level $34,900/day on Baltic description.  

The MR Atlantic Triangulation Basket TCE went from $33,540/day to $35,832/day. 

Handymax 

In the Mediterranean, Handymax rates were slashed again this week with the TC6, 30kt  Cross-Mediterranean index marked down 67 points to WS181, translating to $14,000/day  (58% drop) on Baltic TCE round trip.  

The TC23 30kt Cross UK-Continent also sunk by 57 points this week to WS216, giving  $20,000/day on Baltic TCE round trip.

VLCC

The Baltic panellists now assess the rate for the TD3C route (270,000mt Middle East Gulf to  China) flat to last Friday’s level at WS402.5, which corresponds to a daily round-trip TCE at  close to $400,700 for the standard Baltic VLCC. TD34 (Gulf of Oman/China) was assessed  on Thursday at WS133.5, about 5.5 points up on last Friday.

In the Atlantic market, the rate for the 260,000mt West Africa to China route (TD15) softened  by about 3.5 points to WS118 giving a round voyage TCE of about $84,600, while the US  Gulf to China route (TD22) dropped $700,000 to just above the $16,000,000 mark which  gives a daily round trip TCE of just over $95,700. 

Suezmax

In the Suezmax sector, the rate for the 130,000mt Nigeria/UK Continent voyage (TD20) trip  dipped by 5 points to WS147.5 which translates into a daily round-trip TCE of $54,734. The  TD27 route (Guyana to UK Continent basis 130,000mt) took a harder knock, losing around 17.5 points to WS142.61, giving a daily round trip TCE of $52,854. The Baltic route of  145,000mt USG/UKC (TD33) is again weaker, losing 13 points to just below WS140. 

In the Black Sea, rates for the TD6 route of 135,000mt CPC/Augusta remained around the  WS218-219 level, meaning a daily TCE of about $121,200.

Aframax

In the North Sea, the rate for 80,000mt Cross-UK Continent route (TD7) rose by 7 points to almost WS153, giving a daily round-trip TCE of close to $47,500 basis Hound Point to  Wilhelmshaven. 

In the Mediterranean, the rate for 80,000mt Cross-Mediterranean (TD19) climbed almost 50 points to WS228 basis Ceyhan to Lavera, this shows a daily round trip TCE of just over  $67,100. 

Across the Atlantic, the market has rebounded. The 70,000mt East Coast Mexico/US Gulf  route (TD26) recovered 54 points to almost WS254 giving a daily round-trip TCE of over  $60,500. The 70,000mt Covenas/US Gulf route (TD9) regained 50 points to WS244  (translating into a daily round trip TCE of over $56,700). 

The rate for the transatlantic route of 70,000mt US Gulf/UK Continent (TD25) has  strengthened by over 70 points to WS251.67 which gives a round trip TCE basis  Houston/Rotterdam of almost $57,200/day. 

On the Vancouver exports, the rate for TD28 (80,000mt crude oil Vancouver to China) has continued to fall, losing $390,000 over the course of this week to $3,280,000 (giving a round  trip TCE of about $46,900/day) while TD29 (80,000mt crude oil Vancouver to Pacific Area  Lightering point off the USWC) shrunk by 35 points to WS268.

LNG

The LNG market saw a relatively subdued week overall due to market participants being in Posidonia. Activity appeared steady, with values largely holding within narrow ranges before softening slightly towards the end of the week.

On BLNG1 Australia–Japan rates edged higher over the course of the week, gaining $600 to settle at $78,400/day. The route saw a gradual firming through the midweek, peaking on Thursday, before easing slightly into Friday, suggesting some underlying support. 

BLNG2 US Gulf–Continent remained largely rangebound through the first half of the week. The route decreased $2,000 week-on-week at $103,000/day, reflecting softer sentiment as  the week progressed. 

Similarly, BLNG3 US Gulf–Japan maintained early-week stability at $120,000/day before coming under pressure from Thursday onwards. The route posted the largest weekly  decline, falling $3,400 to settle at $116,600/day. 

On the period side, 6-month time charter increased by $1,700 to $99,800/day. While the 12- month assessment edged slightly lower by $200 to $80,100/day, and 3-year time charter  gaining $1,900 to reach $79,900/day.

LPG

The week proved relatively static overall, with Posidonia drawing participants away from the market and limiting visible fixture activity. As a result, sentiment was broadly steady and rate movement remained fairly muted across the majority of routes. 

BLPG1 Ras Tanura–Chiba route ended on $209.50, with the corresponding TCE settling on $199,721. 

BLPG2 Houston–Flushing moved in the opposite direction, slipping $2.00 week-on-week to close at $155.00, while TCE fell $3,875 to $178,594. The route softened through the early  part of the week before recovering some ground, though overall momentum remained  subdued amid the lack of fresh enquiry on BLPG3. 

BLPG3 Houston–Chiba finished lower, falling $7.83 on the week to $277.50, with TCE declining $7,244 to $164,441. After easing from Monday’s levels, the route saw some midweek support, but this was not enough to reverse the broader softer trend by the end of the week. 

Container

An eventful week for all the major trade lanes as the knock-on effects of the Middle East Gulf situation have caused rates to rocket. 

The transpacific loop saw a 33% increase, FBX01 (China/East Asia – US West Coast)  increased by $1,591 against the end of last week, ending the week at $4,816, this route is  now $2,000 higher than the start of May.

The FBX03 (China/East Asia – US East Coast) is  up by $1,304 week on week a 20% rise in a week, ending this week at $6,386, this is $2,046  above the start of May’s level.

The Far East to the Continent increased by 26%, this is  represented by FBX11 (China/East Asia – North Europe) and increased by $1,063 week on  week, settling the week at $4,031, up $1,430 since the start of May.

Rates into the Mediterranean also jumped by a sizeable amount up $975 on the previous week. FBX13  (China/East Asia – Mediterranean) finished the week at $5,339, up $1,759 from the start of  May.

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.