This week, market fundamentals remained broadly resilient as tariff negotiations continued
Shipping markets held steady this week: tanker owners benefited from increased OPEC+ output, LPG carriers capitalized on favorable arbitrage and longer sailing routes, and car carriers remained resilient despite ongoing tariff pressures.
Geopolitical developments continue to shape all shipping segments.
Rising OPEC+ production continues to underpin strength in the tanker market
Tanker operators may see increased earnings in the coming months, supported by higher crude output from OPEC+ members.
Strong growth in US propane exports is fueling momentum in the VLGC segment
The VLGC market remains robust, supported by exceptionally high US propane production, inventory builds, and favorable pricing that sustain freight arbitrage to Asia. Ongoing congestion at the Panama Canal and elevated slot auction costs are prompting many vessels to reroute via the Cape of Good Hope, lengthening voyage distances and tightening effective tonnage supply. This week, spot earnings for modern eco vessels reached $76,200 per day a twelve-month high according to Clarksons.
The PCTC segment continues to deliver solid performance despite tariff disruptions
The car carrier sector continues to demonstrate notable resilience in the face of tariff challenges. While some volatility has been observed in European trade lanes, volumes from Asia remain robust. However, analysts caution that structural risks including increased Chinese exports and a substantial orderbook could cap long-term growth prospects.
Ongoing tariff negotiations continue to impact global trade dynamics
Geopolitical risk remains a critical driver for market developments. The US and China have extended their trade truce for 90 days, keeping tariffs at 30% on US imports from China and 10% on Chinese imports from the US. Simultaneously, meetings between US and Russian leaders in Alaska underscored persistent uncertainty surrounding the Ukraine conflict, with potential implications for energy markets, sanctions regimes, and global trade flows.
Sources: Clarksons, Reuters, TradeWinds, Washington Post