Drybulk

Capesize

The Capesize market endured a challenging week, with a steadily declining trend across the board. The BCI 5TC shed $2,852 over the week, closing at $8,156. In the Pacific, miner activity remained sparse, with only one miner consistently present. Fixtures from West Australia to China hovered in the low $6.00 range early in the week but slid to $5.85 by the end of the week. While cargo volumes appeared stable, limited demand and increasing tonnage weighed heavily on sentiment. The South Atlantic showed initial promise midweek, driven by fresh inquiry from South Brazil and West Africa to China, momentarily lifting the C3 index. However, mounting tonnage in ballast and weaker trans-Atlantic activity caused a sharp decline, with the C3 and C8 indices dropping significantly by weeks end.

Panamax

Rates continued to slide all week with hopes of the market finding a bottom, but some very low trades were still witnessed. The Pacific began the week active, but as Asian holidays approached, the market slowed significantly towards the weekend. The Atlantic was bereft of sufficient demand to counterbalance against the sheer volume of ballaster tonnage that has harshly impacted rates on most trade routes. From South America to Far East trades, a big spread between the voyage and time charter rates, $30.00 concluded a couple of times for second half February arrivals equating low against the timecharter equivalent rates compared to spot pricing. In Asia, previously seen robust rates ex NoPac unwound this week, rates in the $7,000’s not uncommon whereas far ranging rates for the Australian round trips, between $4,000 and low $5,000’s. As is historically seen this time of year a reasonable amount of period activity, 82,000-dwt’s achieving between $13,750 and $12,000 for short period up to 1 year.

Ultramax/Supramax

Another poor week for the sector as the continued uncertainty and lack of fresh cargo led to rates sliding across the board. The Atlantic remained very subdued, from the US Gulf very little enquiry was seen, a 61,000-dwt fixed delivery US Gulf with petcoke to China at $16,000 mid-week. Elsewhere another 61,000-dwt was heard fixed delivery West Africa trip to China at $12,000. From Asia, with a build-up of prompt tonnage it remained bleak from an owner’s point of view. A 56,000-dwt fixing a trip from Indonesia to China $3,000. Further north, limited options remained, a 61,000-dwt fixing a NoPac round basis delivery Busan at $8,000. Similarly backhaul options remained limited, a 57,000-dwt was heard fixed from China to West Africa in the mid $7,000s. The Indian Ocean also lacked inspiration, a 59,000-dwt fixing delivery South Africa for a trip to China at $10,000 + $100,000 ballast bonus. With the upcoming Chinese holiday, it seems difficult for this trend to see any great change.

Gas Tankers

LNG

The LNG shipping market has seen a further decline in sentiment. Driven by excess tonnage, a lack of cargoes and delays at Freeport, the market experienced another downturn, with the most recent fixture involving a 2-stroke deal being made at sub-$10,000 and less than 100% round-trip earnings.

The BLNG1 Australia–Japan route for both 160k cbm TFDE and 174k cbm 2-Stroke vessels saw declines, with rates dropping by $1,600 and $1,800 respectively. The TFDE index closed at $8,600, while the 2-Stroke index ended at $15,400. Despite these declines, The Pacific market performed better than the Atlantic, where both the BLNG2 and BLNG3 routes saw even sharper drops.

For BLNG2 Houston–Continent, the 174k cbm 2-Stroke index fell by $8,100, closing at $9,500, while the 160k cbm TFDE equivalent dropped by $5,400 to $4,400. This represents some of the lowest rates recorded in LNG market history. The BLNG3 Houston–Japan route recorded the largest decline of the week, with the 174k cbm 2-Stroke index falling by $8,900 to $14,200, and the 160k cbm TFDE index dropping by $7,800 to close at $7,100.

The term market also saw very little change. Short-term rates increased slightly by $450, settling at $25,200 for six-month charters. One-year rates decreased by $600, closing at $30,725, while three-year rates saw a modest increase of $1,700 to $48,250. These minimal fluctuations reflect the lack of interest in longer-term charters. With the growing supply of vessels, period rates are not expected to recover soon.

LPG

This week, the LPG market experienced a noticeable bearish shift, with declines observed across key routes. BLPG1 Ras Tanura to Chiba saw a sharp drop, with rates falling by $12, closing at $47.33. This decrease also impacted daily TCE earnings, which fell by $12,573, settling at $27,075. The drop in rates highlights a weaker demand for vessels in this route, further adding to the overall negative sentiment.

In the Atlantic, both BLPG2 and BLPG3 faced downward pressure as a softer bearish sentiment took hold. BLPG2 Houston–Flushing saw a decrease of $2.63, closing at $53.25. Daily TCE earnings also saw a decline, falling by $3,488 to close at $49,002. This reflects the broader trend of diminishing activity in the Atlantic basin. Meanwhile, BLPG3 Houston–Chiba experienced a $1.92 drop, largely attributed to vessels being listed with no inquiries, pointing to a further weakening in demand for this route. The Baltic final published rate for BLPG3 settled at $97.58, with TCE earnings of $33,160. The overall outlook for the market remains cautious, as these declines suggest a period of reduced activity and potential further pressure on rates in the near term.