Capesize
THE market experienced a mixed week, with the Pacific providing the main source of volatility while the Atlantic remained comparatively steady, albeit lacking consistent momentum. The Pacific initially came under pressure before recovering through midweek, supported by regular miner participation on C5, with fixtures progressing from the low $18s to around $18.50.
However, this improvement proved short-lived as late-week fixing slipped back below $18/tonne, leaving sentiment softer heading into the close. South Brazil and West Africa were quieter, with limited engagement around index dates. C3 values generally held in the low $41s, with occasional fixtures reported towards $42.
In the North Atlantic, sentiment was mixed to softer, particularly following weaker fronthaul fixtures, although tighter prompt tonnage and a limited number of remaining stems provided some support for the trans-atlantic route.
Overall, the BCI 182 5TC ended the week at $55,139, down $1,492 from Monday’s $57,011. Higher bunker prices and ongoing uncertainty in the Middle East remained additional factors for market participants to consider.
Panamax-Kamsarmax
This week began on a subdued note as the US Labor Day holiday led many market participants to reassess positions and rate expectations. Activity remained limited across both basins, although Pacific sentiment stayed positive, supported by steady demand on shorter-haul routes. Notable fixtures included a 73,000-dwt and 74,000-dwt vessel fixing Indonesia to South China at $17,000 and $18,000, respectively.
As the week progressed, Atlantic sentiment remained under pressure due to an oversupply of prompt tonnage, particularly in the North Continent, with an 82,000-dwt vessel fixing a trans-atlantic round at $20,750. Fronthaul activity proved more resilient, supported by ongoing coal and grain demand, with an 82,000-dwt vessel securing $24,000 for an EC South America trip from EC India and an 81,000-dwt fixing $24,000 basis delivery Singapore.
In contrast, Pacific fundamentals strengthened, highlighted by an 85,000-dwt vessel fixing an Australian round voyage at $27,000. Period activity was limited, with an 82,000-dwt vessel reported fixed for one year at $22,000 and an 81,000-dwt fixing for 5-7 months for the same rate. Overall, the Pacific outperformed the Atlantic, with sentiment remaining broadly supportive despite only modest index movements.
Ultramax/Supramax
A week of steady improvement, with the index posting gains every day and finishing the week over $500 higher on the 11TC average. North America was the main driver again with the fronthaul market the most active. A 63,000-dwt fixed a grains stem to the east at $34,000, and at the end of the week there was a rumour of a similar type fixed for a petcoke cargo for US Gulf to India at $38,000. In the south, rates were largely maintained with the highlight being a 63,000-dwt achieving $20,000 plus $1,000,000 ballast bonus for grains Recalada to the East.
In Asia, the market was relatively flat with the odd positional increase, with North Pacific grains and the backhaul market the main strength, whereas Southeast Asia was slightly softer due to ballasters from EC India and Bangladesh with a 55,000-dwt fixed basis Singapore delivery via Indonesia to China at $17,000. Rates from South Africa remained steady with a 64,000-dwt fixed from WC India at $18,000 for coal to the Far East. The period market was subdued this week.
SEE ALSO
Handysize
The Handysize market showed a firmer tone over the week, with the Atlantic remaining the main source of support. The US Gulf and South Atlantic strengthened as tightening tonnage and steady demand helped push rates above previous levels. A 37,000-dwt was reported fixed from Mobile to Ushant-Skaw with wood pellets at $19,000, while a 28,000-dwt was reported fixed basis delivery Matadi on 7-10 September via Recalada to Tema with grains at $10,000.
The Continent and Mediterranean were generally steady, with limited visible fixing activity but firm underlying fundamentals. A 33,000-dwt fixed from Spain via Arzew to the US Gulf with bagged cement at $10,000. In Asia, sentiment was more balanced to subdued, with activity varying by area, while some Pacific routes showed modest improvement and a slight increase in Southeast Asian tonnage kept participants cautious. Reported fixtures included a 38,000-dwt open Jakarta 9-10 September fixed via Dampier to China with salt at $19,000.
Clean
LR2
The TC1 75kt MEG/Japan index jumped 209 points this week to WS785 returning around $232,000/day on a Baltic round trip basis. A voyage west also shot up 66% to $16.5 million on the TC20 90kt MEG/UK-Continent index. In Europe, the TC15 80kt Mediterranean/East index came off modestly to $6.1 million (-$80,000), with the corresponding TCE now at just under $38,000/day on Baltic description round trip via Suez.
LR1
MEG LR1’s also climbed dramatically after some clarifying market activity this week, with the TC5 55kt MEG/Japan index adding 191 points to WS820. A run west on TC8, 65kt MEG/UK-Continent saw the index move up by $2.93 million to $10.82 million.
MR
The TC17 35kt MEG/East Africa index came up this week from WS556 to WS708, this took the Baltic TCE for the run to $86,600/day round trip. On the UK-Continent, MRs remained flat again this week, with the TC2 37kt ARA/US-Atlantic Coast unmoved from its current WS100 bottom and the Baltic TCE for the round trip now at $ -6,400/day. In the US Gulf MR freight softened over the week following Labor Day on Monday.
The TC14 38kt US Gulf/UK-Continent index went from WS250 to WS220. The Baltic round trip TCE for the run is now at $19,100/day. The Caribbean voyage on TC21, 38kt US Gulf/Caribbean followed suit and is currently at $678,571 (-$115,000). The corresponding TCE is now at $14,700/day on Baltic description. The MR Atlantic Triangulation Basket TCE went from $27,200/day to $21,500/day.
Handymax
In the Mediterranean, Handymax rates came up circa 20 points this week. The TC6 30kt Cross-Mediterranean index is now at WS188, generating a Baltic TCE of $12,700/day, up 64% from last week. The TC23 30kt Cross UK-Continent remained level around the WS175 mark this week with returns at $5,100/day on Baltic description.
VLCC
The rates for the Middle East routes increased dramatically this week, with few ships in position for the numerous cargoes available. The TD3C route (270,000 mt Middle East Gulf to China) rose 21% from WS677.78 last Friday to WS821.11 on Thursday.
This gives a daily round-trip TCE of $862,150 for the standard Baltic VLCC. TD34 (Gulf of Oman/China) rose from WS277.5 last Friday to WS450.71 (a 62% increase) on Thursday, meaning a round-trip TCE of $465,764/day.
In the Atlantic market, a similar story played out. The rate for the 260,000 mt West Africa to China route (TD15) gaining over 125 points to WS370 (a 51% increase), giving a round voyage TCE of $353,642/day, while the US Gulf to China route (TD22) made another large step up, rising nearly $6,000,000 to just over $35,110,000, which gives a daily round trip TCE of just over $257,000.
Suezmax
In the Suezmax sector, the market was also firmer across all the Baltic routes. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) rose 77 points to WS326.67, which translates into a daily round-trip TCE of about $162,200.
The TD27 route (Guyana to UK Continent basis 130,000 mt) was boosted by 71 points to WS313, giving a daily round trip TCE of just over $156,400.
The 145,000 mt USG/UKC (TD33) leapt up 52 points to WS252.22, which gives a round-trip TCE of just over $142,800/day.
In the Black Sea, the market strengthened after the last couple of weeks of ‘calming down’. For the TD6 route of 135,000 mt CPC/Augusta, the rate has been pushed up 75 points to about WS370, which shows a daily round-trip TCE of about $253,500.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) regained 11 points to WS216.67, showing a daily round-trip TCE of $103,365 basis Hound Point to Wilhelmshaven.
In the Mediterranean, the rate for 80,000 mt Cross-Mediterranean (TD19) steadily climbed 101 points this week to about WS330, basis Ceyhan to Lavera this shows a daily round trip TCE of just over $115,200.
Across the Atlantic, the owners have tightened their grip of the market. The 70,000 mt East Coast Mexico/US Gulf route (TD26) rose 110 points to WS345, giving a daily round-trip TCE of just shy of $94,300 while the 70,000 mt Covenas/US Gulf route (TD9) gained 104 points to the WS322.5-325 level, translating into a daily round trip TCE of about $87,750.
The rate for the trans-atlantic route of 70,000 mt US Gulf/UK Continent (TD25) strongly advanced 136 points to the WS375 mark, which gives a round trip TCE basis Houston/Rotterdam of almost $99,400.
On the Vancouver exports, the TD28 (80,000 mt crude oil Vancouver to China) rose by over $1,400,000 to $4,600,000 (giving a round trip TCE of just under $76,000/day) while TD29 (80,000 mt crude oil Vancouver to PAL point off the US WC) gained 54 points to WS320.
LNG
The LNG market showed signs of improvement this week, with increased chartering activity and stronger sentiment supporting spot rates across both basins. While vessel availability remains elevated, emerging October requirements and renewed interest in multi-month coverage helped improve market confidence.
On the BLNG1 Australia–Japan route, rates increased by $5,300 week-on-week to settle at $26,000/day. The Pacific market strengthened steadily through the week as cargo demand improved and sentiment turned slightly more positive.
The BLNG2 US Gulf–Continent route rose by $2,100 to close at $19,100/day. While Atlantic fundamentals remain challenging, increased enquiry and firmer sentiment provided support, allowing rates to recover modestly from recent lows.
Similarly, the BLNG3 US Gulf–Japan route gained $8,200 week-on-week to settle at $37,600/day. The route posted the strongest increase of the three assessments, supported by a tighter tonnage list to the backend of the window.
In the time charter market, sentiment grew softer. The six-month rate fell by $8,500 to $47,500/day, while the one-year term declined by $2,000 to $52,500/day. Further out the curve, the three-year period eased by $450 to $72,000/day.
LPG
The LPG market was relatively quiet this week, with many participants focused on industry events. Only one fixture was reported that limited price discovery. Rising tensions in the Middle East remain a key watchpoint and could influence sentiment and freight rates in the weeks ahead.
On the BLPG1 Ras Tanura–Chiba route, rates settled at $226.00, with TCE earnings closing at $216,042/day. The BLPG2 Houston–Flushing route declined by $1.08 week-on-week to settle at $153.67, with TCE earnings falling by $2,040 to $173,637/day. Similarly, the BLPG3 Houston–Chiba route fell $1.43 to close at $281.57, while TCE returns decreased by $1,863 to $165,292/day. The route remained largely unchanged amid muted trading conditions.
Container
It was a mixed week of fortunes for the key FBX routes. We are just two months away from the end of the suspension of the USTR imposed fees on Chinese owned/built vessels paying fees for US port calls. These fees could higher than US$1 million for a typical container vessel on the FBX01/FBX03 trades.
With rates on both these routes at much higher than “normal” rates, it will be interesting to see if these fees continue to be suspended, as rates will otherwise increase further as any charges will end up being passed on to the shippers and eventually the consumers buying the end products.
The cross Pacific trade loop FBX01 (China/East Asia – US West Coast) gained $146 from last Friday ending the week at $7,715 and is up $1,583 since the start of July.
Rates from the Far East to the USEC FBX03 (China/East Asia – US East Coast) increased by $274 from last Friday ending at $9,779. This route is up $1,882 since the start of Q3. Trade into the North Continent from the Far East FBX11 (China/East Asia – North Europe) decreased by $113 week-on-week, ending the week at $4,338 and is down $472 since the start of July.
Trade into the Mediterranean from the Far East FBX13 (China/East Asia – Mediterranean) lost $512 from the end of last week, ending the week at $3,929 and is down $2,606 from the start of Q3.
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.
