Solid fundamentals underpin rate stability
Shipping markets stabilized this week following the June 24 ceasefire between Israel and Iran. While war-risk premiums and freight rates saw a slight decline, operational risks in the region persist. The tanker sector eased from recent highs, whereas the LPG segment maintained its stability.
Ceasefire puts pressure on tanker earnings
The tanker market declined as tensions in the Middle East eased, with average crude earnings settling around USD 40,000 per day and the Suezmax segment showing particular resilience. War-risk premiums moderated slightly but remained elevated. Product tankers held up better, supported by continued rerouting via the Cape of Good Hope and the Red Sea. Despite the resumption of port calls in Haifa, risks in the Strait of Hormuz—such as GPS interference and recent incidents—continue to require close monitoring.
LPG rates soften, but core fundamentals remain strong
The LPG market remains robust, underpinned by limited tonnage availability outside the US, despite a slight decrease in spot rates to USD 63,874 per day (-5% week-on-week). Looking ahead, the market is expected to remain firm, supported by rising US exports, an open West-East arbitrage window, and the commissioning of a new US facility with a capacity of 700,000 barrels – potentially requiring 14 to 16 additional VLGCs, according to Clarksons.
Demand for car carriers remains robust
The car carrier market has demonstrated notable resilience following a period of declining earnings in the second half of 2024, supported by steady growth in European registrations and strong Chinese electric vehicle exports.
Summer break – we’ll be back in August
We are taking a short break in July and will return in August with fresh market insights. Thank you all for your continued loyalty and interest. Wishing you an excellent summer.
Sources: Clarksons, Drewry, Financial Times, Hellenic Shipping News & Reuters.