Capesize
The Capesize market closed the week on a firm and optimistic note. Early activity was stifled by the Vesak Day holiday in Singapore, and while initial trading was subdued, sentiment remained bullish from the previous week, underpinned by stronger bids and tightening tonnage. In the Pacific, although early-week rates softened slightly amid heavy enquiry, support returned mid-week with rising values and strong miner engagement. The C5 market showed steady improvement, with the index closing at $8.195. The Atlantic presented a more complex picture. Early concerns over growing ballaster numbers and logistical issues, such as the San Nicolas loader breakdown, created pressure. However, robust demand from South Brazil and West Africa, coupled with tight tonnage in the North Atlantic, gradually boosted sentiment. A floor developed on C3 at around $18.00 by mid-week, with the route closing at $19.405. Notably, the fronthaul market firmed significantly, reflected in a sharp rise in the C9 index. By the end of the week, momentum across both the Atlantic and Pacific helped the BCI 5TC recover to $16,736, marking a gain of over $2,382 week-on-week.
Panamax
A lacklustre week for the Panamax market more noticeably in the Atlantic as limited demand was met with an increasing tonnage count. The Atlantic lacked trans-Atlantic demand and returned a predominantly fronthaul led basin although rates here came under pressure mid-week with a tonnage/cargo imbalance. Reports Monday had an 82,000-dwt delivery Continent achieving $20,000 for a trip via US East coast redelivery India, however by mid-week for the same trip $14,000 was concluded highlighting well the decline in levels as the week went on. In Asia, a mixed week with the NoPac market lacking any kind of support rates consequently drifted, however demand ex Australia did improve over the week with improved levels seen on the nearby position, reports midweek of an 82,000-dwt delivery Japan agreeing a rate of $11,000 for trip via EC Australia redelivery Japan. Subdued period activity reporting but it did include rumours of an 82,000-dwt delivery China fixed basis 5/7 months at $13,750.
Ultramax/Supramax
With holidays and various shipping events throughout the week it was a rather lacklustre affair overall. The Atlantic saw demand remain from the US Gulf although this seemed to be easing as the week closed. A similarly story from South America certainly for trans-Atlantic runs. A 58,000-dwt was heard fixed basis delivery Fazendinha for a trip redelivery at Otranto $17,850. The Continent-Mediterranean lacked fresh impetus and rates remained under downward pressure. The Asian arena was described by some as positional, a 58,000-dwt was heard fixed basis delivery Singapore trip via Indonesia redelivery China at $12,500. Whilst a 63,000-dwt fixed delivery Surabaya trip via Indonesia redelivery Thailand at $17,000. The Indian Ocean saw a reasonable amount of activity, but again this seemed to be slowing as the week ended. A 64,000-dwt was fixed basis delivery Saldanha Bay for a trip to China at $20,000 plus $200,000 ballast bonus. It remains to be seen what the upcoming week has in store as most return to their desks.
Handysize
This week, the market saw minimal visible activity across both basins. In the Continent and Mediterranean, market fundamentals remained soft with sentiment stayed somewhat positional. A 37,000-dwt fixed delivery Bejaia via Jorf Lasfar to redelivery Samsun at $7,000. Sentiment in the U.S. Gulf remained subdued, with tonnage count seems to maintain its length and putting further pressure on rates. A 37,000-dwt fixed a trip delivery Hampton roads redelivery Continent with coal at $10,500. In the South Atlantic, market fundamentals remained largely balanced, for instance a 36,000-dwt vessel was fixed for delivery Recalada for redelivering to the NC South America at $15,500. In Asia, some sources noted a slight increase in the tonnage count, but cargo volumes have helped keep rates steady for now. A 38,000-dwt vessel was fixed for delivery in CJK, via Bing Bong, redelivering to Continent with concentrates at $13,500.
Clean
LR2
LR2’s in the MEG saw a welcome upturn this week. The TC1 75kt MEG/Japan index jumped from WS112.78 to WS141.67 taking the Baltic TCE for the run up over the $30,000/day round trip. A TC20 90kt MEG/UK-Continent also climbed by $575,000 to $3.83m. West of Suez, Mediterranean/East LR2’s ticked up modestly this week by $55,000 to $3m.
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LR1
MEG LR1 freight also rocketed upwards this week. The TC5 55kt MEG/Japan index added 26.25 points to value taking it to WS160.63. A voyage west on TC8 65kt MEG/UK-Continent went from $2.72m to $3.09m. On the UK- Continent LR1 freight levels remained stable this week. The TC16 60kt ARA/West Africa index was marked at 1-2 points below WS120.
MR
MRs in the MEG also moved upward this week. The TC17 35kt MEG/East Africa index stepped up optimistically to WS223 where it has been 2 days at time of writing.
UK-Continent MRs are a different story to the MEG and have dipped this week in terms of freight. The TC2 37kt ARA/US-Atlantic coast trip came down 8.44 points to WS117.19. The Baltic description round trip TCE for the run has subsequently dropped below $10,000 to $9,493 /day. The TC19 voyage of 37kt ARA/West Africa index tracked like TC2 and went from WS145.63 to WS136.39. USG MRs have only moved downward this week. The TC14 38kt US-Gulf/UK-Continent went from WS110 to WS83.21. The TC18 the 38kt US Gulf/Brazil index sunk by 22.85 points to WS136.79 and a Caribbean run on TC21, 38kt US-Gulf/Caribbean came off $105,000 to $425,000 (-19.8%). The MR Atlantic Triangulation Basket TCE went from $20,033 to $13,573. The lowest it’s been since June 2023.
Handymax
Baltic Clean Handymax’s improved a little this week. The TC6 30kt Cross Mediterranean index went from WS131.94 to WS141.94. Up on the UK-Continent the TC23 30kt Cross UK-Continent held flat in the low WS130’s.
VLCC
The market bounced back towards the end of this week, except in the US Gulf where rates are still on the slide. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) climbed 5 points to WS64.35 corresponding to a round-trip TCE of $45,668.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) rose 2 points to WS63.19 giving a round voyage TCE of $44,743 per day. The rate for 270,000 mt US Gulf/China (TD22) tumbled $352,500 to $8,197,500 which shows a daily round trip TCE of $43,043.
Suezmax
Suezmax owners have stemmed the tide with rates remaining static across all routes. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) remains around the WS86.5-87.5 mark meaning a daily round-trip TCE of about $34,500 while the TD27 route (Guyana to UK Continent basis 130,000mt) has eased 3 points to the WS82.5-83.5 region translating to a daily round trip TCE of $32,171 basis discharge in Rotterdam. The TD6 route of 135,000 mt CPC/Augusta has been hovering around the WS110 region for the 2nd week showing a daily TCE of about $43,800 round-trip. In the Middle East, the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) is stuck at the WS87.5-88 level.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) had a further 10 points hacked, and is at WS113.75, giving a daily round-trip TCE of about $26,600 basis Hound Point to Wilhelmshaven.
In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean (TD19) took another beating, losing 27 points to WS117.72 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $22,261).
Across the Atlantic, another market reversal saw rates for the local business climb while the longer voyage Trans-Atlantic eased gently. For the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) the rates firmed around 13 points to WS154.17 and 151.88 respectively, which shows a daily round-trip TCE of around $34,300 and $32,700. The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) slipped about 2 points to WS148.33 giving a round trip TCE basis Houston/Rotterdam of $35,251 per day.
LNG
The LNG freight market has seen a steady decline in rates this week across both basins. The Pacific spot earnings has eased slightly whereas the Atlantic’s rate performance has not been so subtle.
On the BLNG1 Australia to Japan route, 174k cbm vessels have eased from $22,800 per day to $22,600 per day, while 160k cbm vessels have shown a similar performance to $22,600 per day, today.
In the Atlantic, rates have continued to be dragged downwards. BLNG2 US Gulf to Continent saw a sharp $18% drop to $31,800 for 174k cbm vessels, while 160k cbm units declined almost 13% to $16,400 per day. The BLNG3 US Gulf to Japan route dropped $5,400 and $2,700 for 174k and 160k cbm vessels respectively, closing at $40,300 and $21,100 per day.
The term charter market went up this week, following positive spot sentiment recently. Six-month TC rates rose $2,500 to $35,450 per day, while one-year charters gained $2,850, closing at $39,175 per day. Three-year rates were also higher, up $1,750 to $56,550 per day, reflecting charterer appetite for securing tonnage ahead of potential tightening in the second half of the year.
LPG
The LPG market surged this week across all key routes, driven by increased trading sentiment following the announcement of the new US–China tariff cuts. The policy shift has prompted a wave of positive sentiment and has translated into the upward movement of freight rates.
The BLPG1 AG–Japan route saw a sharp increase of $11.75 to settle at $68.67 per metric ton, lifting TCE earnings by $12,400 to $53,026 per day.
The BLPG2 US Gulf–Continent route also posted firm gains, climbing $5.38 to finish at $62.50 per metric ton. The corresponding TCE rose by $6,803 to $64,861 per day.
The BLPG3 US Gulf–Japan route surged $9.50, reaching $117.67 per metric ton, with TCE earnings up by $6,733 to $48,550 per day. The strength here underscores heightened demand for long-haul VLGCs on transpacific routes ahead of expected customs adjustments.
Container
The liner industry woke up to positive news this week, that the US and China have come to an agreement to significantly lower their tariffs against each other for a period of 90 days whilst they continue to talk. The US will lower tariffs from 145% to 30%, while China’s retaliatory tariffs on US goods will drop to 10% from 125%.
This news should have a positive impact for the liner industry as shippers will likely now restart importing goods from China with haste, in case after the 90 days expire the higher tariffs return, so we could see more instability to come in mid Q3, just prior to peak season.
Liner companies that had suspended some services, would be expected to resume normal loop programmes in the next couple of weeks.
Consequently, transpacific container rates on FBX01 (China/East Asia – USA West Coast) have creeped up this week, ending the week at $2,718/FEU $307 higher than last Friday. FBX02 (USA West Coast – China/East Asia) rates were flat over the week finishing at $438/FEU. FBX03 (China/East Asia – USA East Coast) also saw a week-on-week increase of $354 finishing the week at $3,784/FEU. FBX11 (China/East Asia – North Europe) rates increased $173/FEU, finishing the week at $2,578/FEU. FBX12 (North Europe – China / East Asia) increased to $452/FEU. FBX13 (China/East Asia – Mediterranean) increased by $73 ending the week at $3,009/FEU.
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.
