Capesize
The Capesize market enjoyed a strong upward trajectory this week, driven by consistent gains in the Pacific and mounting support in both South Brazil and the North Atlantic. The BCI 5TC rose steadily from $19,071 on Monday to $23,572 by week’s end, reflecting robust demand and tightening tonnage across both basins. In the Pacific, C5 rates climbed from below $9.00 to $10.40-$10.50 levels, underpinned by limited tonnage, strong iron ore demand, and increased activity from miners and operators.
The South Brazil and West Africa to China (C3) markets gained traction midweek, supported by Vale’s presence and a tightening list of ballasters, lifting rates from the low $21s to the mid $24s. The North Atlantic, initially quiet, gathered momentum midweek, with firming trans-Atlantic and EC Canada to China fixtures boosting sentiment and rates.
Panamax
The Panamax market wrapped up a notably active week with solid gains, particularly driven by renewed strength in the Atlantic. The North Atlantic led the charge with significant rate improvements, while South America added further support. A tightening tonnage list mid week helped lift sentiment, with fixtures reflecting the firmer tone: an 82,000-dwt was fixed delivery Gibraltar for a trip via NC South America, redelivery Gibraltar-Barcelona range at $11,000, and another 82,000-dwt fixed delivery EC India for an EC South America fronthaul at $13,000. In Asia, the week was more mixed.
The pull from EC South America helped reinforce owners’ sentiment, especially for open tonnage in South-east Asia. However, rates for longer Pacific rounds – particularly ex-NoPac and Australia – softened into the $8,000s before showing signs of recovery toward the week’s end. Period activity remained subdued, though there was a notable report of a newbuilding 82,000-dwt delivery ex-yard China fixing basis one year at $13,000.
Ultramax/Supramax
It was another challenging week for the sector, with rates in both the Atlantic and Pacific regions under continued downward pressure. In the Continent and Mediterranean, sentiment remained largely positional. Fixtures indicated that rates were hovering near last done levels. A 57,000 fixed for a delivery Bremen via Kotka to redelivery Indica via COGH at $13,000.
In the South Atlantic and US Gulf, fundamentals remained weak, with an oversupply of tonnage continuing to outpace demand. A 64,000-dwt fixed delivery Montevideo around 11/15 June for a trip to redelivery Altamira at $17,500. The Asian market also experienced a sluggish week, with activity reduced due to regional holidays and subdued sentiment. A 53,000-dwt fixed delivery Kandla for a trip to redelivery Vietnam with salt at $6,500.
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Handysize
This week, the market delivered a mixed performance across the regions, with overall sentiment remaining flat. In the Continent and Mediterranean, market fundamentals stayed soft, with limited visible activity. A 37,000-dwt fixed delivery Skaw for trip to redelivery Portugal with grains at $9,500. The South Atlantic and US Gulf markets maintained a steady pace, supported by stable tonnage levels and pockets of fresh demand. A 39,000-dwt fixed delivery Mobile redelivery Reunion with wood pellets at $16,000.
In Asia, the market also remained flat. Although the tonnage list gradually increased, modest fresh demand helped hold rates steady. No significant shift in cargo volumes was observed to drive rates higher. A 39,000-dwt fixed delivery Teluk Bayur via Bunbury to redelivery Nantong with grains at $12,000. In the period market; a 39,000-dwt fixed delivery Caribbeans for 5/7 months redelivery Singapore/Japan range at $12,650.
Clean
LR2
LR2’s in the MEG have held steadfast this week despite seemingly consistent downward sentiment. The TC1 75kt MEG/Japan index dipped a modest 5.55 points from WS134.72 to WS129.17. A TC20 90kt MEG/UK-Continent also only ticked down $75,000 to $3.66m.
West of Suez, Mediterranean/East LR2’s saw a couple of market reported fixtures this week however the TC15 index still dropped $75,000 to $2.86m.
LR1
MEG LR1’s also only moved a little this week. The TC5 55kt MEG/Japan index hovered around the high WS150’s to low WS160’s all week. A voyage west on TC8 65kt MEG/UK Continent also floated around the $2.9m-$3.0m level.
On the UK- Continent LR1 freight levels were unwavering for the third week on week this week. The TC16 60kt ARA/West Africa index maintained itself around the WS112-WS113 mark.
MR
MRs in the MEG were gently pushed down this week. The TC17 35kt MEG/East Africa index as a result went from WS194.64 to WS188.57. This has taken the Baltic round trip TCE for the run to just under $17,500 /day.
UK-Continent MRs bottomed out this week. The TC2 37kt ARA/US-Atlantic coast run shed 7.5 points to WS137.5. The TC19 voyage of 37kt ARA/West Africa index match the behaviour of TC2 and went from WS165 to WS156.3.
USG MRs appeared more balanced this week. The TC14 38kt US-Gulf/UK-Continent trip dropped to WS111.43 from WS129.64 but has returned to WS117.86 at time of writing. The TC18 the 38kt US Gulf/Brazil index came down 10.71 points to WS166.43 and a Caribbean run on TC21, 38kt US-Gulf/Caribbean bottomed out at $603,214 but is now back up to $632,143 after starting the week at $716,429.
The MR Atlantic Triangulation Basket TCE went from $25,988 to $22,732 after bottoming at $19,857 mid-week.
Handymax
The TC6 30kt Cross Mediterranean index dropped sharply this week from WS189.44 to WS135.66. Up on the UK-Continent the TC23 30kt Cross UK-Continent also went from WS183.06 to WS160.56.
VLCC
The market plunged further this week, although a floor seems to have been found and rates in the Middle East Gulf and West Africa have arguably started to rebound. The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) fell overall almost 7 points to WS44.35 corresponding to a round-trip TCE of $24,332.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) is now 4 points lower than a week ago at WS48.63 giving a round voyage TCE of $29,631 per day. In the US Gulf region, the interesting story here is that Equinor had a cargo on Wednesday and the 2 main participants fighting for the business were Exxon and Shell with relets. Exxon won that battle, taking the first counter at $6,400,000. Since then, sentiment has softened further and the TD22 route of 270,000 mt US Gulf to China was last assessed on Thursday at $6,182,500 (down over $1 million for the week) which shows a daily round trip TCE of $27,810.
Suezmax
Suezmax owners in the Atlantic region have managed to push rates up. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) has improved by nearly 9 points to WS89.17 meaning a daily round-trip TCE of $36,509 and the TD27 route (Guyana to UK Continent basis 130,000 mt) is similarly assessed almost 9 points up for the week at WS86.94 translating to a daily round trip TCE of $37,793 basis discharge in Rotterdam. The TD6 route of 135,000 mt CPC/Augusta is 5 points firmer at a fraction below WS100 giving a daily TCE of $36,350. In the Middle East, the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) remained around the WS83 level.
Aframax
In the North Sea market for the 80,000 mt Cross-UK Continent route (TD7) the rate remained at WS122.5 giving a daily round-trip TCE of about $36,371 basis Hound Point to Wilhelmshaven.
In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) recovered 15 points to settle around the WS135 mark (basis Ceyhan to Lavera, that shows a daily round trip TCE of a little over $32,600).
Across the Atlantic, the rollercoaster ride has started again. For the 70,000 mt East Coast Mexico/US Gulf route (TD26) the market rose over 40 points but has now fallen back about 4 points since the peak, at WS171.11 showing a daily round trip TCE of about $42,200 and the rate for 70,000 mt Covenas/US Gulf route (TD9) mirrored the moves of TD26 and is now assessed at WS167.19 giving a daily round-trip TCE of around $38,700.
The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) peaked after rising 32 points and then lost 8 points on Thursday to be assessed at WS173.33 giving a round trip TCE basis Houston/Rotterdam of $44,646 per day.
LNG
The LNG market saw muted activity due to most market players attending Nor-Shipping, with slight softening in the Pacific and mixed resilience in the Atlantic basin. Freight rates for both vessel sizes posted losses on the longer Pacific routes, while US–Europe maintained slight upward pressure.
On the BLNG1 Australia-Japan route, rates dropped $600 for both vessel sizes. The 174k cbm units slipped to $19,900 per day, while 160k cbm ships settled at $11,100 per day – continuing the downward trend amid weaker Pacific demand.
In contrast, the Atlantic showed some divergence. BLNG2 US Gulf–Continent saw a modest $200 gain for 174k cbm vessels to $29,100 per day, with 160k cbm vessels holding steady at $14,600 per day, reflecting stable tonnage and modest activity.
However, the BLNG3 US Gulf-Japan route softened further, falling $800 and $200 for 174k and 160k cbm vessels respectively, closing at $34,300 and $17,500 per day. The decline points to reduced long-haul interest and ongoing pressure from a weak arbitrage window.
The time charter market reflected a cautious tone. Six-month TC rates fell $300 to $38,450 per day, and one-year deals edged down $75 to $39,800. However, three-year charters rose, climbing $1,450 to $56,000 per day.
Despite the mixed signals, sentiment remains steady, with players mostly readying for end of July and August positions.
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.
