Baltic Exchange Shipping Insights

Capesize 

The market endured a sustained and broad-based decline through the week, with the BCI  182 5TC falling from $37,618 at Monday’s close to $29,464 by Friday. Persistent selling  pressure across both basins drove rates lower, with sentiment deteriorating as the week  progressed. The Pacific remained under pressure throughout, with limited miner participation  and insufficient fresh enquiry to support rates. Despite a brief increase in C5 miner activity  midweek, competition among owners intensified as bids retreated, with fixtures falling from  $13.40 at the start of the week to $11.25 by Thursday. However, the return of two miners on  Friday provided some support, prompting greater resistance from owners and allowing the  C5 index to recover to close the week at $11.70. The Atlantic also weakened, with increased  fixing activity later in the week in the South Brazil and West Africa to China markets, albeit at  progressively lower levels. C3 index-date business slipped towards $30, reflecting ample  tonnage supply and limited buying appetite. The North Atlantic remained subdued, with  weaker transatlantic and backhaul fixtures adding to the negative sentiment, while activity on  the Fronthaul route remained limited. 

Panamax-Kamsarmax 

The week opened with a largely balanced Atlantic market, where a steady flow of mineral  cargoes supported transatlantic activity, although sufficient vessel availability continued to  limit any meaningful upside. A 75,000-dwt vessel was reported fixed for a US Gulf  transatlantic trip at $21,500. Meanwhile, sentiment in the Pacific improved on active demand  from Australia, Indonesia and the North Pacific, with reports of prompt tonnage tightening  and firmer fixing levels. A 76,000-dwt fixed an Indonesia trip to South China at $18,000, a  93,000-dwt fixing for a North Pacific round at $20,000, and an 82,000-dwt fixed for an Australia round trip at $19,000. By midweek, the divergence between the two basins became  more pronounced. While Pacific demand remained supportive, Atlantic sentiment  deteriorated as tonnage accumulated, particularly in the North Continent and South Atlantic.  Charterers tested lower levels amid widening bid-offer spreads, limited grain demand and  growing concerns over vessel oversupply. Although the Pacific remained comparatively  resilient, easing East Coast Australia enquiry later in the week prompted suggestions that  rates had reached a near-term ceiling. Period activity remained evident, particularly for laden  legs and short period employment. An 82,000-dwt fixed for two laden legs trading within the  Atlantic at $27,000, a 94,000-dwt fixed two to three laden legs basis delivery in the Pacific at  $24,000 and a 75,000-dwt fixed for five to seven months at $19,000. With the exception of  Monday, the P5TC declined throughout the week, with the steepest losses recorded towards the end of the week. 

Ultramax/Supramax

The index saw slow gains throughout the week driven mainly by the Asian market. The US  Gulf started on a steady footing with a 63,000-dwt fixed US Gulf to China with petcoke at  $34,000, but rates later softened as surplus tonnage took effect. The south fared better with  a 63,000-dwt fixed Santos to Ain Sukhna with sugar redelivery Port Said at $36,000 and  fronthaul levels flat around $19,250 plus $925,000 ballast bonus, which was in line with last  week. The Continent, however, peaked last week against scrap demand, but levels remain  strong albeit lower and the Mediterranean finally saw more activity with a 63,000-dwt fixed  passing Canakkale to West Africa with clinker at $22,000. The North Pacific witnessed slow  and steady gains continuing from last week and a newbuilding 63,000-dwt fixed from Kunsan  via NoPac to Indonesia at $25,000 and backhauls also increased with another similar  newbuilding fixed ex yard Zhoushan at $29,250 for a trip to the Mediterranean, whilst a  63,000-dwt fixed from North China to West Africa at $24,000. Southeast Asia was also more  active and rates to India saw the most improvement, however there was very few period  trades rumoured throughout the week, despite the continued strength. 

Handysize 

The Handysize market delivered a mixed performance across the regions this week. The  Continent and Mediterranean remained stable, supported by a healthy cargo book. A 37,000- dwt open Hereke 10–12 October was fixed passing Canakkale via Iskenderun to the North  Coast of South America at $11,000. In the South Atlantic, market fundamentals remained  strong, particularly for larger vessels, indicating continued support. A 36,000-dwt was placed  on subjects for a trip from Santos to the West Coast of South America at $31,500, and a  39,000-dwt was said to have fixed at $32,000 for EC South America to the Continent. By  contrast, the US Gulf remained sluggish, with limited activity and a continuing downward  trend driven by an oversupply of tonnage. A 35,000-dwt was reported fixed from SW Pass to  the West Coast of Central America with grains at $17,500. Meanwhile, the Pacific firmed  amid tight tonnage and healthy demand from the North Pacific and Australia. A 37,000-dwt  vessel open Port Kelang 11–13 October was fixed via Australia to China at $16,000. 

Clean

LR2 

The TC1 75kt MEG/Japan index climbed by 47 points this week to WS986, with the  corresponding Baltic round-trip TCE gaining $14,800 to $285,400/day. For the TC20 90kt  MEG/UK-Continent run, the index rose by $2.73 million to $21.24 million, corresponding to  $332,000/day on Baltic round trip. The TC15 80kt Mediterranean/East index added $2.40  million to finish at $16.40 million, with the Baltic round-trip TCE improving by $32,100 to  $175,000/day. 

LR1 

The TC5 55kt MEG/Japan index gained 37 points this week to WS982, translating to  $202,000/day on Baltic round trip. For a trip westward on the TC8 65kt MEG/UK-Continent  route, the index jumped by $3.14 million to $15.76 million, while the Baltic round-trip TCE  return climbed by $56,500 to $241,500/day. 

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Baltic Exchange Shipping Insights

MR 

The TC17 35kt MEG/East Africa index edged down by around 2 points this week to WS891,  with the TCE dropping by $500 to $112,900/day. On the UK-Continent, the TC2 37kt  ARA/US Atlantic Coast index shed 3 points to WS198 and the corresponding Baltic round trip TCE fell by $1,200 to $11,500/day. In the US Gulf, the TC14 38kt US Gulf/UK-Continent  index climbed by 104 points to WS386, with the round-trip TCE gaining $20,200 to  $51,700/day. The TC21 38kt US Gulf/Caribbean run rose from $900,000 to $1.28 million,  while the corresponding Baltic TCE increased by $21,300 to $49,000/day. The MR Atlantic  Triangulation Basket TCE climbed from $45,200/day to $62,700/day. 

Handymax 

In the Mediterranean, the TC6 30kt Cross-Mediterranean index jumped by 73 points to  WS431 this week, with the corresponding Baltic round-trip TCE gaining $20,800 to  $82,100/day. The TC23 30kt Cross UK-Continent index dropped 16 points to WS321, with  the run’s TCE declining by $5,200 to $47,500/day. 

VLCC 

The VLCC rates on the Baltic Exchange routes fell back this week. The TD3C route  (270,000mt Middle East Gulf to China) dropped 37.5 points to WS1,281.25, giving a daily  round-trip TCE of $1,370,193 for the standard Baltic VLCC. TD34 (Gulf of Oman/China) fell  more sharply, by about 64 points to WS776.43, giving a round-trip TCE of $837,569/day. 

In the Atlantic market, the rate for the 260,000mt West Africa to China route (TD15) lost a  fraction over 38 points to WS711.88, giving a round-trip TCE of $720,400/day, while the US Gulf to China route (TD22) fell by $8.75 million to $80.58 million, which gives a daily round trip TCE of $559,334. 

Suezmax 

In the Suezmax sector, the market weakened across the Baltic Exchange routes, except in  the Black Sea. The rate for the 130,000mt Nigeria/UK Continent voyage (TD20) fell 76 points  to WS920, which gives a daily round-trip TCE of about $522,600. The TD27 route (Guyana  to UK Continent basis 130,000mt) dropped by 33 points to WS952.22, giving a daily round trip TCE of just under $550,000. The 145,000mt USG/UKC (TD33) fell by about 40 points to  WS828, which gives a round-trip TCE of just over $563,600/day. 

In the Black Sea, available tonnage remains tight while sentiment was buoyed further by the  initial November loading plan, which sources put at around 1.45 million to 1.55 million  barrels/day of CPC Blend crude. The 135,000mt CPC/Augusta route (TD6) increased by 68  points to just over WS1092, which gives a daily round-trip TCE of about $888,400. 

Aframax 

In the North Sea, the rate for the 80,000mt Cross-UK Continent route (TD7) dropped by 36 points to WS590, giving a daily round-trip TCE of just under $486,400 basis Hound Point to Wilhelmshaven. 

In the Mediterranean, the rate for 80,000mt Cross-Mediterranean (TD19) fell 60 points to the WS720 mark. Basis Ceyhan to Lavera, this gives a daily round-trip TCE of $333,700. 

Across the Atlantic, rates appear to have peaked, with a lack of activity lowering  expectations since last Friday. The 70,000mt East Coast Mexico/US Gulf route (TD26)  slumped by 224 points to about WS842, giving a daily round-trip TCE of over $303,700. The  70,000mt Covenas/US Gulf route (TD9) fell by 198 points to the WS830 mark, giving a daily  round-trip TCE of over $272,000. 

The rate for the transatlantic route of 70,000mt US Gulf/UK Continent (TD25) lost 203 points  to the WS755 mark, which gives a round-trip TCE basis Houston/Rotterdam of $234,851. 

On the Vancouver export routes, rates are mixed, with owners showing a preference for  longer voyages over shorter trips. The TD28 route (80,000mt crude oil Vancouver to China)  fell by $210,000 to $15,590,000. This gives a round-trip TCE of a little over $334,000/day.  The TD29 route (80,000mt crude oil Vancouver to Pacific Area Lightering point off the  USWC) rose by 25 points to WS953. 

LNG 

The LNG market remained under pressure this week, despite a number of cross-basin requirements emerging from both the US Gulf and West Africa. With the fixing window moving into November and early December, vessel availability continues to outweigh cargo  demand, limiting the usual seasonal uplift in freight rates around this time. 

On the BLNG1 Australia–Japan route, rates declined by $2,700 week-on-week to settle at  $27,600/day. The Pacific market remains competitive among owners, with a large number of  vessels offering on a relatively limited number of cargoes. 

The BLNG2 US Gulf–Continent route declined by $200 to close at $21,200/day. Despite  increased cross-basin enquiry, ample vessel availability and charterers seeking East or West  flexibility kept rates relatively flat. 

Similarly, the BLNG3 US Gulf–Japan route fell $800 week-on-week to settle at $49,000/day.  Long-haul requirements remained present, although the absence of a sustained Eastbound  arbitrage and continued competition between vessels limited support for rates. 

In the time charter market, sentiment softened across all periods. The six-month rate fell by  $3,800 to $42,500/day, while the one-year term declined by $933 to $51,100/day. Further out  the curve, the three-year period edged lower by $50 to $69,900/day. 

LPG 

The LPG market cooled slightly this week following the strong gains seen the previous week, as the arbitrage narrowed and reduced further upward gains. Despite this, sentiment remains firm with the tonnage list continuing to look tight, helping to limit downside pressure on freight rates. 

On the BLPG1 Ras Tanura–Chiba route, rates settled at $263.20/tonne, with TCE earnings  closing at $255,539/day. 

The BLPG2 Houston–Flushing route declined by $7.50 week-on-week to settle at  $182.33/tonne, with TCE earnings falling by $12,085 to $213,443/day. The route softened as  the arbitrage narrowed, although limited vessel availability continued to provide support. 

Similarly, the BLPG3 Houston–Chiba route fell $9.14 to close at $333.43/tonne, while TCE  returns decreased by $7,695 to $204,369/day. The route eased from the elevated levels  seen last week, but sentiment still remains firm. 

Container 

Container freight markets were broadly stable over the week, with the FBX Weighted  Average rising from 3,370 at the start of the week to 3,560 by the end of the week. The most  significant movement was seen on the Asia to US East Coast trade, where rates rose from  $9,606 to $10,772/FEU over the week. This rise accounted for most of the increase in the  composite index and remains the standout development across the major east-west trades  this week. Asia to US West Coast rates were comparatively stable, gaining only slightly from  $8,118 to $8,173. Meanwhile, Asia to North Europe rates increased at the end of the week from $3,380 to $3,692, indicating continued resilience on the main Europe-bound corridor.  Asia to Mediterranean rates also saw a slight uptick, gaining slightly from $3,876 to $4,142.

Backhaul and secondary trades remained subdued. Europe to Asia, Mediterranean to Asia,  transatlantic and South American routes experienced only minor day-to-day fluctuations, with  no clear directional trend emerging. Market conditions appeared balanced, with most routes  trading within a narrow range. Overall, the week was characterised by price resilience across  the main trade routes.

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

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