A weekly round-up of tanker and dry bulk market (Oct 16, 2026)

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The market endured a sustained and broad-based decline through the week, with the BCI 182 5TC falling from US$37,618 at Monday’s close to US$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 US$13.40 at the start of the week to US$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 US$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 US$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.

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 US$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 US$18,000, a 93,000-dwt fixing for a North Pacific round at US$20,000, and an 82,000-dwt fixed for an Australia round trip at US$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 US$27,000, a 94,000-dwt fixed two to three laden legs basis delivery in the Pacific at US$24,000 and a 75,000-dwt fixed for five to seven months at US$19,000. With the exception of Monday, the P5TC declined throughout the week, with the steepest losses recorded towards the end of the week.

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 US$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 US$36,000 and fronthaul levels flat around US$19,250 plus US$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 US$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 US$25,000 and backhauls also increased with another similar newbuilding fixed ex yard Zhoushan at US$29,250 for a trip to the Mediterranean, whilst a 63,000-dwt fixed from North China to West Africa at US$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.

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 US$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 US$31,500, and a 39,000-dwt was said to have fixed at US$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 US$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 US$16,000.

LR2

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

LR1

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

MR

The TC17 35kt MEG/East Africa index edged down by around two points this week to WS891, with the TCE dropping by US$500 to US$112,900/day. On the UK-Continent, the TC2 37kt ARA/US Atlantic Coast index shed three points to WS198 and the corresponding Baltic round-trip TCE fell by US$1,200 to US$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 US$20,200 to US$51,700/day. The TC21 38kt US Gulf/Caribbean run rose from US$900,000 to US$1.28 million, while the corresponding Baltic TCE increased by US$21,300 to US$49,000/day. The MR Atlantic Triangulation Basket TCE climbed from US$45,200/day to US$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 US$20,800 to US$82,100/day. The TC23 30kt Cross UK-Continent index dropped 16 points to WS321, with the run's TCE declining by US$5,200 to US$47,500/day.

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 US$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 US$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 US$720,400/day, while the US Gulf to China route (TD22) fell by US$8.75 million to US$80.58 million, which gives a daily round-trip TCE of US$559,334.

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 US$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 US$550,000. The 145,000mt USG/UKC (TD33) fell by about 40 points to WS828, which gives a round-trip TCE of just over US$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 US$888,400.

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 US$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 US$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 US$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 US$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 US$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 US$210,000 to US$15,590,000. This gives a round-trip TCE of a little over US$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.

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 US$2,700 week-on-week to settle at US$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 US$200 to close at US$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 US$800 week-on-week to settle at US$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 US$3,800 to US$42,500/day, while the one-year term declined by US$933 to US$51,100/day. Further out the curve, the three-year period edged lower by US$50 to US$69,900/day.

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 US$263.20/tonne, with TCE earnings closing at US$255,539/day.

The BLPG2 Houston–Flushing route declined by US$7.50 week-on-week to settle at US$182.33/tonne, with TCE earnings falling by US$12,085 to US$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 US$9.14 to close at US$333.43/tonne, while TCE returns decreased by US$7,695 to US$204,369/day. The route eased from the elevated levels seen last week, but sentiment still remains firm.

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 US$9,606 to US$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 US$8,118 to US$8,173. Meanwhile, Asia to North Europe rates increased at the end of the week from US$3,380 to US$3,692, indicating continued resilience on the main Europe-bound corridor. Asia to Mediterranean rates also saw a slight uptick, gaining slightly from US$3,876 to US$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.

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