A weekly round-up of tanker and dry bulk market (Aug 22, 2025)

This report is produced by the Baltic Exchange.

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The Capesize market endured a notably weaker week overall, with the BCI 5TC shedding more than US$4,000 before closing at US$23,160, aided by a US$742 uptick today. The Pacific struggled from the outset, with the lack of consistent miner presence weighing on sentiment and pushing C5 rates below US$9.00 by midweek. The week, however, closed on a slightly firmer note, with two miners active and a fixture concluded at US$9.50, offering some encouragement. In the South Brazil and West Africa to China market, thinner first-half September volumes and a growing ballaster list kept pressure on sentiment, although C3 bids around US$23.50 for late September lent a more positive tone heading into next week. The North Atlantic remained relatively tight, with intermittent bursts of fronthaul and transatlantic activity, although fixtures generally concluded at levels softer than the index.

The excitement this week predominantly emanated from the Atlantic again. The continued lack of early tonnage in the North had a profound effect on rates, with both robust fronthaul and sound transatlantic demand rates lurched, with US$30,000 reported on a super-spec 87,000-dwt type delivery Continent for a US East Coast to India run the headline rate on fronthaul trades, whilst some talk that close to US$17,000 timecharter equivalent was achieved in the North Atlantic for a transatlantic voyage deal, adding further fuel to the fire. The Pacific market by contrast was less supported throughout the week, with rates sliding day-by-day as tonnage count began to outweigh any demand ex NoPac or Australia, however solid demand all week ex Indonesia saw rates hover around the US$14,000 mark for index type tonnage. Several period fixtures were reported due to an improving outlook and steady increasing paper values, with an 82,000-dwt delivery Korea for nine to 11 months trading reported late in the week at US$15,250.

Despite many still being away on their summer vacations, it was a solid week for the sector. Demand remained in the US Gulf for the transatlantic runs, with an ultramax being heard fixed at around US$30,000 for the same. More cargo was seen from bother the Continent and West Mediterranean, with a 63,000-dwt fixing delivery Liverpool for a trip via Garrucha redelivery US East Coast at US$13,000. The South Atlantic was a bit more stable and sentiment remained fairly positive. 

From Asia, sustained demand helped owners’ expectations, with an ultramax from North China heard to have fixed a NoPac round at US$16,750, whilst on the backhaul side of things a Supramax fixed again delivery North China for a trip to West Africa at US$16,000. Further south, a 57,000-dwt was heard fixed basis delivery Singapore trip via Indonesia redelivery China at US$19,000. The Indian Ocean was a rather lacklustre affair, with a 62,000-dwt fixing delivery South Africa for a trip redelivery China at US$17,000 plus US$170,000 ballast bonus.  

Like the larger size, it was generally a positive week for the Handy sector, certainly from the Atlantic. Better levels of enquiry were seen from both the North and South Atlantic. A 43,000-dwt was heard fixed delivery Recalada for a trip to Bejaia at US$21,000 and a 39,000-dwt was heard fixed delivery Fazendinha trip to Morocco at US$22,000. The Continent-Mediterranean also continued to see an upward trend, with a 28,000-dwt fixing delivery Sete for a trip via West Mediterranean redelivery Egyptian Mediterranean at US$13,000. 

The Asian arena remained rather balanced as brokers say demand kept pace with supply. A 37,000-dwt fixed delivery Malaysia trip via West Australia redelivery Arabian Gulf in the US$14,000s. Period activity was limited, although a newbuild 39,000-dwt was heard fixed on an index deal basis delivery October at 121% of BHSI for two years trading.

LR2

LR2 freight in the MEG continued to track downward this week. The TC1 75kt MEG/Japan index dropped from WS143.06 to WS137.5. A TC20 90kt MEG/UK-Continent trip also lost US$162,500 of value to US$3.85 million, which at time of writing remains last done. 

West of Suez, Mediterranean/East LR2’s levelled off after reaching US$2.95 million for a TC15 Baltic description voyage where the index has sat all week.

LR1

MEG LR1’s tracked along the same path as their larger counterparts this week. The TC5 55kt MEG/Japan index fell 10 points to WS156.88. A voyage west on TC8 65kt MEG/UK-Continent also moved down US$142,870 to US$3.05 million. On the UK-Continent LR1 freight did not budge all week from its WS112.5 for the TC16 60kt ARA/West Africa index.

MR

MR freight in the MEG weakened again this week. The TC17 35kt MEG/East Africa index went from WS238.57 to WS225 following the market seeing reduced activity this week. This drops the Baltic description round trip to US$23,409/day. UK-Continent MRs recharged themselves this week. The TC2 37kt ARA/US-Atlantic coast went from WS100.31 to WS118.75. This saw the Baltic TCE round trip for the run climb 60% to US$9,695/day.

USG MR freight shot upward with gusto this week. The TC14 38kt US-Gulf/UK-Continent trip jumped by 64.64 points to WS203.57 increasing the Baltic TCE by 87% to US$28,324/day round trip. A Caribbean run on TC21, 38kt US-Gulf/Caribbean also saw a commanding jump of US$525,000 to US$1.10 million, with the TCE shooting up from US$15,519/day to US$46,235/day on Baltic description round trip. The MR Atlantic Triangulation Basket TCE went from US$21,518 to US$35,532.

Handymax

The Mediterranean Handymax of TC6, 30kt Cross Mediterranean held resolute seeing the index remain in the mid WS130’s all week. The TC23 30kt Cross UK-Continent managed to climb a modest 8.89 points to WS150.

The VLCC markets have firmed this week, with the rate for the 270,000 mt Middle East Gulf to China trip (TD3C) boosted 11 points to WS67.05, corresponding to a daily round-trip TCE of close to US$50,300.

In the Atlantic market, the rate for 260,000mt West Africa/China (TD15) saw 10 points added, now being assessed at WS65.25 giving a round voyage TCE of US$48,537/day. In the US Gulf region, the rate for the TD22 route of 270,000mt US Gulf to China improved by another US$442,500 to US$7,652,500, which shows a daily round trip TCE of about US$39,700.

In the Suezmax sector, the market has rebounded. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) improved by more than five points to WS110, which translates into a daily round-trip TCE of about US$49,500. The TD27 route (Guyana to UK Continent basis 130,000 mt) also improved, adding 10 points and settling at the WS107.5 mark, meaning a daily round trip TCE of a little less than US$47,900. The TD6 route of 135,000 mt CPC/Augusta powered on, improving by 13 points to just shy of the WS145 mark giving a daily TCE of nearly US$74,000. In the Middle East, the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) recovered over five points to WS102.11

In the North Sea, the rate for 80,000mt Cross-UK Continent route (TD7) gained a further eight points to just shy of WS140 giving a daily round-trip TCE of close to US$50,300 basis Hound Point to Wilhelmshaven.

In the Mediterranean, the rate for 80,000mt Cross-Mediterranean (TD19) slipped six more points to almost WS140 (basis Ceyhan to Lavera, with a daily round trip TCE of about US$33,500).

Across the Atlantic, the market was split. For the shorter routes, owners felt the need to be more competitive, while the transatlantic route was far more appealing. The 70,000 mt East Coast Mexico/US Gulf route (TD26) lost nearly 26 points to WS155 (giving a daily round-trip TCE of about US$34,100) and the 70,000 mt Covenas/US Gulf route (TD9) was reduced by almost 24 points to about WS148 (translating into daily round trip TCE of just over US$31,000).

The rate for the transatlantic route of 70,000mt US Gulf/UK Continent (TD25) gained eight points to WS153.61, giving a round trip TCE basis Houston/Rotterdam of US$37,407/day.

On the Vancouver exports, TD28 (80,000 mt crude oil Vancouver to China) regained US$50,000 to US$1,825,000 and TD29 (80,000 mt crude oil Vancouver to Pacific Area Lightering point on the US West Coast) was slightly firmer.

It has been another subdued week in the LNG market, although sentiment edged slightly firmer on key routes. Spot earnings improved for 174k vessels, while 160k ships saw a mixed performance and time charter activity was equally varied.

On the BLNG1 Australia–Japan route, 174k cbm rates gained US$500 to US$35,100/day, while 160k cbm vessels also improved US$200 to US$20,900/day as Pacific demand provided modest support.

The BLNG2 US Gulf–Continent route strengthened, with 174k cbm earnings rising US$600 to US$36,900/day. In contrast, 160k cbm vessels slipped US$200 to US$21,800/day as Atlantic shorter-haul demand remained uneven.

The BLNG3 US Gulf–Japan route saw modest momentum, with 174k cbm rates climbing US$900 to US$44,100/day and 160k cbm tonnage adding US$200 to US$25,900/day, underpinned by steady US export flows.

Time charter activity was mixed. The six-month TC rate eased US$1,450 to US$44,150/day, reflecting near-term softness. The one-year TC edged up US$50 to US$45,750, while the three-year term rose by US$850 to US$56,800.

It has been a quiet week in the LPG market, with softer sentiment prevailing as the arbitrage began to move and activity slowed. Rates drifted lower across all key routes.

On the BLPG1 Ras Tanura–Chiba route, rates slipped US$2.08 to US$87.67 per tonne, with TCE earnings falling US$2,110 to US$75,741/day, as Middle East activity eased and prompt availability improved.

The BLPG2 Houston–Flushing route edged down US$1.25 to US$82.00 per tonne, while TCE returns dropped US$1,750 to US$93,235/day. Softer Atlantic demand and more balanced vessel supply contributed to the decline.

The BLPG3 Houston–Chiba route weakened US$1.83 to US$151.17 per tonne, with TCE earnings retreating US$1,256 to US$76,537/day. Narrowing arbitrage opportunities capped fresh enquiry, weighing on long-haul sentiment.

While we have seen China and the US extend their tariff pause for a further 90 days from Aug 12, we wait to see if they can reach a satisfactory trade deal for both sides, with tariffs currently set at 30% between the two countries.

Liner companies have continued to blank services to stabilise rates and this appears to be having the desired effect with the slowdown in rates coming off.

Across the FBX suite of routes, we have seen a downward trend in all rates ex China since the start of the month. FBX01 (China/East Asia – US West Coast) ended the week at US$1,742/FEU, down US$627/FEU from start of August. FBX03 (China/East Asia – US East Coast) ended the week at US$2,726/FEU down US$979 compared with start of the month. FBX11 (China/East Asia – North Europe) ended the week at US$2,953/FEU down US$504 on the start of the month and down US$139 from last Friday. FBX13 (China/East Asia – Mediterranean) ended the week at US$3,080/FEU down US$47 from last Friday and down US$126 from the start of August.

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