Baltic Exchange Weekly Shipping Update: Feb 28, 2025 — Capesize rally dominates a mixed week as Panamax softens and LNG/LPG markets rise

A sweeping week in the dry bulk and tanker markets painted a clear picture: Capesize vessels led a broad upswing on sentiment, while other segments faced a more mixed backdrop with pockets of robust activity and softening rates in key routes. The Baltic Exchange’s weekly market summary for February 28, 2025 highlights a dramatic lift in Capesize rate benchmarks across the Pacific and Atlantic, a pressure-filled Panamax environment, and selective gains in Ultramax/Supramax, Handysize, and product-tanker segments. Across crude, clean, and LNG/LPG trades, traders weighed improving demand against the constraints of tonnage supply and ballast movements. This comprehensive weekly readout underscores how pivotal cargo flows, miner and coal demand, and regional ballast dynamics shape the shipping market. The following sections break down each vessel class and key route, focusing on the drivers, the price action, and the resulting implications for freight markets, operators, and investors.

Capesize

The Capesize market posted a strong upward trajectory over the week, underpinned by tightening tonnage lists and resilient demand in key mining-driven regions. The Baltic Capesize index (BCI) surged significantly, with the 5TC benchmark climbing from US$8,620 on Monday to US$15,074 by Friday. This sharp ascent reflected a combination of improved sentiment across both major basins and a more dynamic flow of coal and ore cargoes that supported higher rates. In the Pacific, the market was notably firm, driven by a combination of miners’ steady intake, continued coal demand, and a tighter availability of suitable ships. This confluence of factors kept freight rates buoyant on long-haul routes that feed into major Chinese and regional buyers.

The C5 iron ore route, crucial for Atlantic-Pacific coal and ore trade, rose from US$6.65 on Monday to US$9.885 by Friday. The Atlantic saw sustained support on routes from South Brazil and West Africa to China, buoyed by fresh cargoes and a shorter ballast cycle that kept ships productive. The C3 route, a benchmark for Brazil-to-China and West Africa-to-China movements, climbed from US$18.31 to US$19.875 by week’s end, with early-April fixing activity reaching as high as US$20.25–US$20.30 for certain dates. Even with a leaner roster of fresh cargoes later in the week, sentiment in the North Atlantic remained positive, and indices like C8 and C9 rose steadily.

Overall, the Capesize segment delivered a strong weekly performance, with rates moving higher across the majority of main routes. The combination of firm Pacific demand for coal and minerals, a tightening ballaster list, and healthy activity in the South Atlantic and West Africa routes created a favorable environment for owners and operators. Market participants cited improved sentiment as a driver of new fixtures, while the shorter ballast cycles helped sustain higher levels of utilization. The week’s price action underscored the resilience of Capesize trade, particularly on routes that feed into major steel-producing regions, and suggested potential upside in early April fixings if cargo flow remained steady and ballast lists remained controlled. With the market pointing toward a constructive tone, shipowners could expect continued pressure on charterers to secure tonnage on long-haul runs, while traders projected a broader rebalancing of supply and demand in the Capesize arena.

Within the broader Capesize complex, the performance differed by geography and cargo mix, but the overarching theme remained positive. Pacific demand, anchored by miners and operators, plus intensified coal cargo movements, contributed to firming rates that backed the week’s gains. In the Atlantic, ongoing support from fresh cargoes and reduced ballast durations helped sustain the rate environment, though the pace of gains exhibited some variability as the week progressed. The North Atlantic continued to reflect a positive sentiment, even as the market faced the typical mid-month lull that sometimes accompanies seasonal adjustments in tonnage supply and discharge windows. In summary, Capesize markets finished the week on a high note, with robust price action capturing the attention of market participants looking to position for a continued revival in the long-haul, high-capacity trade segment.

From a market-structure perspective, the week emphasized the sensitivity of Capesize rates to tonnage lists and cargo discharge windows. The tightening list in the Pacific and the Atlantic’s steady demand from miners helped push rates higher, while the C5, C3, and related indicators provided diagnostic signals for the health of the market. The rate improvements across key routes suggested a broader momentum that could sustain into early March if cargo flows remained robust and port constraints did not intensify. With new fixtures being reported on high-activity routes, owners could anticipate continued interest from charterers in securing Capesize tonnage ahead of anticipated seasonal swings, while the ballast dynamics would remain a critical factor in determining whether gains could persist.

In sum, Capesize markets showcased a standout week, characterized by strong momentum, rising benchmarks, and a favorable balance of demand and tonnage supply that enabled a meaningful lift in values and activity. The sector’s performance reinforced the broader message of a recovering dry bulk complex, where strategic cargo movements and disciplined ballast management translate into tangible gains for owners and operators.

Panamax

Panamax markets faced a contrasting week, marked by significant pressure on rates and a shift in trader sentiment. Atlantic routes witnessed pronounced losses as the week opened, driven by absent mineral demand and extended tonnage counts that amplified the market’s supply overhang. The negative momentum grew as fixtures and enquiry levels declined relative to earlier periods, underscoring a fragile sentiment across several key corridors. Asia initially showed some resilience, maintaining a reasonable volume of fresh enquiry and a steady flow of fixtures, with the North Pacific enjoying a reasonable pace of activity supported by mineral demand from Australia and Indonesia. However, as the week progressed, the market’s protective cushion diminished, and rate levels softened in most areas.

On the Atlantic side, the market’s weakness was pronounced, with the trans-Atlantic routes bearing the brunt of the demand slowdown. The lack of fresh demand and the accumulation of available tonnage contributed to an environment in which freight rates retreated and benchmarking indices drifted lower. The nuanced picture in the Atlantic contrasted with Southeast Asia’s early-week stability, though that strength proved insufficient to offset the overall softening trend by week’s end. The mixed performance across the Panamax segment underscored the susceptibility of this size class to global demand shifts, particularly as shipments of iron ore and agricultural commodities respond to price signals and seasonal cycles.

From the Asia-Pacific perspective, early in the week there was a buoyant start with positive enquiry and a reasonable flow of fixtures, suggesting a degree of resilience in the market’s core supply chains. Yet, as the week unfolded, the market experienced a broad-based softening that translated into lower-end rates in most routes. The North Pacific continued to witness a steady stream of enquiry, supported by mineral demand from the region, but the abundance of available tonnage weighed on rates. The EC South America corridor saw only moderate levels of fixing during the week, with the index-type tonnage available near the low US$14,000s range for port delivery, accompanied by ballast bonuses, reflecting a tepid environment for the near term.

Rate dynamics in the NoPac corridor hovered near the 82,000-dwt benchmark of approximately US$12,000–US$13,000, with shorter Indonesian round trips trading closer to the US$10,000 mark, consistent with a market facing headwinds. The week underscored how Panamax rates can pivot quickly in response to shifts in demand from key tradelanes and cargo supply, serving as a barometer for broader market tension in the dry bulk complex. With the Atlantic under pressure, owners and operators weighed the prospect of improving sentiment as new cargoes emerged and ballast cycles shortened, but the balance of power remained tilted toward charterers in the near term.

In summary, Panamax markets experienced a testing week marked by meaningful rate losses on trans-Atlantic routes and a tempered pace in other major corridors. While Asia showed some initial resilience, the broader theme was softening sentiment, reflecting a cautious market posture as traders priced in weaker mineral demand and a longer ballast cycle. The week’s outcomes highlighted the sensitivity of Panamax performance to global demand shifts and cargo flows, and suggested that a stabilization or rebound would likely depend on a renewed influx of fresh cargoes and a more favorable ballast environment in the weeks ahead.

Ultramax/Supramax

Ultramax and Supramax sectors painted a picture of transition rather than decisive momentum. As the week progressed, the upturn that had characterized the recent period appeared to plateau, signaling a pause in the sector’s earlier momentum. The Atlantic remained described as largely stable, with activity showing a willingness among buyers and sellers to transact, but the overall pace did not accelerate. In contrast, the US Gulf region was described as fairly busy, yet freight rates remained relatively flat, implying a balance between inquiries and available capacity rather than a surge in pricing power.

The South Atlantic presented a more nuanced story, with rates easing slightly as new tonnage entered the market and demand signals remained modest. A 61,000-dwt vessel fixing for a delivery in Recalada to the Arabian Gulf in the mid US$12,000s plus a ballast bonus in the mid US$200,000s flagged ongoing willingness to move cargo, but not at aggressively higher levels. The Mediterranean-Continent corridor also displayed softer activity, underscoring a fragile demand environment in traditional European routes. At the beginning of the week, a 55,000-dwt vessel fixed from the Continent to the Mediterranean at around US$12,500, reflecting a cautious tone as buyers and sellers weighed uncertain near-term cargo flows.

From Asia, early-week positivity gave way to a softer sentiment, with the market gradually cooling as the week wore on. Still, a notable fixture reported involved a 56,000-dwt vessel fixed open in Japan for a backhaul via the China–Oceania–Germany (COG-H) route to the Continent-Mediterranean at US$14,000, illustrating that selective long-haul fixtures could still command attractive levels in the right conditions. A 64,000-dwt vessel open in Indonesia was heard fixed for a trip to China at US$17,000, signaling continued demand for longer regional round trips in select markets. The Indian Ocean experienced patchy demand, with Ultramax vessels around US$12,000 plus a US$120,000 ballast bonus reported for South Africa to China runs, while further north Supramax sizes were heard at roughly the mid US$5,000s to mid US$6,000s for trips from India to China.

Overall, Ultramax/Supramax markets showed a flattening trajectory after a prior stretch of gains. The sector’s performance suggested a mixed environment in which some routes could still achieve respectable earnings, especially on longer-haul runs or in markets with tight tonnage lists, but the broad trend did not exhibit the same upside severity seen in Capesize. For operators, the message was one of selective opportunities—watch for cargoes with shorter ballast cycles or routes where demand remains firm and vessel availability tight. For market observers, the week’s data implied a consolidation phase after a period of expansion, with traders awaiting fresh catalysts—such as new cargo commitments or shifts in port congestion—to re-energize pricing.

Handysize

This week’s Handysize sector delivered a mixed, but generally constructive, performance across basins. In the Continent and the Mediterranean, rates held their positive momentum, nudging higher than recent levels and signaling continuing support for smaller-capacity trades. An illustrative fixture involved a 25,000-dwt vessel fixed for delivery in Egypt with a fertiliser cargo to the U.S. Gulf, at a rate in the low US$6,000s, reinforcing sentiment that fundamental demand in the region remains supportive even as broader markets navigate volatility. The South Atlantic continued to show strong fundamentals, underpinning the larger-size Handysize ships and indicating continued demand for smaller, flexible tonnage.

A 39,000-dwt vessel fixed for delivery in Recalada with redelivery in Liverpool at US$16,500 illustrated robust activity on South American routes, driven by a mix of agricultural and industrial cargoes and the region’s appetite to connect with North Atlantic markets. In contrast, U.S. Gulf activity showed more modest improvements, with a 38,000-dwt vessel placed on subjects for SW Pass with redelivery in West Coast Central America in the US$12,000 range, reflecting a more cautious appetite from buyers and a tighter supply of prompt ships in the region.

In Asia, market fundamentals remained strong, supported by healthy demand-supply balance and solid fixtures, particularly for NoPac and Southeast Asia trades. A notable fixture involved a 38,000-dwt vessel fixed from Japan to redelivery in Brazil at US$10,500, signaling continued appetite for trans-Pacific and South America routes among Handysize players. The week’s patterns suggested that while broader markets experienced volatility, Handysize retained a degree of resilience on routes with stable demand and flexible discharge windows, reinforcing the segment’s role as a fluid, multipurpose class that can adapt to shifting cargo flows.

Looking ahead, Handysize fundamentals point to ongoing opportunities in regional trades where demand for timely, small- and mid-sized tonnage remains robust. The sector’s ability to service diverse cargoes—from fertilizers to agricultural commodities to minor bulk shipments—positions it well to absorb near-term volatility and capture value as markets adjust. The balance of supply and demand, combined with favorable backdrop in Continent-Med and South Atlantic routes, indicates a potential for continued steady activity and selective rate improvements in the weeks ahead.

Clean LR2/MEG, LR2 and LR1

The Clean Tanker segment, with a focus on LR2/MEG and LR1 markets, remained a focal point for many market participants, especially with London’s International Energy Week drawing attention to long-haul trade and MEG (Middle East to Asia) demand dynamics. The week’s numbers showed that LR2 trades with MEG exposure stayed vigilant, supported by steady MEG/Japan index activity. The TC1 75,000-ton MEG/Japan index hovered around the WS120 mark, indicating a stable, high-availability route with predictable long-haul economics, even as markets assessed supply and demand balance in the crude/distance-sensitive segments. The TC20 90,000 MEG/UK-Continent index remained around the US$3.35 million to US$3.4 million level, signaling a steady LNG-like megaship assessment for MEG-heavy routes.

On the West of Suez, the Mediterranean/East LR2s of TC15 softened slightly, dipping from US$2.9 million to US$2.85 million, reflecting regional demand shifts and the typical week-to-week volatility in long-haul LR trades. The LR2s operating in MEG remained under the watch of traders seeking reliable MEG/Japan fixtures, given the MEG’s role as a pivotal energy hub in global trade. LR1s, the smaller leg of the LR market, held steady as with the 2s, underlining a generally balanced demand environment for long-haul clean trades. The TC5 55,000 MEG/Japan index hovered near WS137.5–140, suggesting a firm, value-driven market for this segment.

A voyage west on TC8, representing 65,000 MEG to UK-Continent trades, concluded the week around US$2.78 million, up from US$2.72 million, indicating modest upward pressure on westbound long-haul clean cargo movements. On the UK-Continent routes, the TC16 60,000 ARA/West Africa index held at roughly WS125 with little movement week over week, signaling relative stability in one of Europe’s core clean trade corridors. The MR market in the MEG continued its upward trend for a second consecutive week, reflected in the TC17 index and the 35,000 MEG/East Africa fixture constants, which moved from WS208.93 to WS222.86, demonstrating improving earnings for modest-sized clean tankers on specialized routes.

UK-Continent MR trades saw a minor but real uptick, with the TC2 index for 37,000 ARA/US-Atlantic coast rising to WS162.81 on Tuesday and subsequently holding near WS155.31 as the week ended, illustrating the volatility typical of smaller clean trades during London’s energy-centered week. These freight levels correspond to approximately US$16,000–US$18,000 per day on a round-trip basis, consistent with a robust UK-Continent MR segment when MEG-related positions are active.

In the USG arena, MR freight in the MEG declined in some segments; however, the broader MEG corridor’s renewal of demand for clean product movements continued to offer opportunities for traders with access to suitable tonnage and flexible discharge options. The TC19 route for 37,000 ARA/West Africa generally followed the same behavior as TC2 but with a consistent premium, reflecting regional volatility around LNG, crude, and refined product flows.

Market participants noted that the evolving balance between MEG supply and global refinery demand continued to drive pricing discipline in the LR2 and LR1 space. With OPEC+ and other producers maintaining strategic stances on crude allocation and product flows, LR trades remained closely tied to shifts in refinery utilization and cross-regional demand. The LR2/MEG and LR1 sectors continued to be a central piece of the broader clean-tanker market, serving as an important bridge between crude supply basins and downstream markets, and offering a degree of price resilience in the face of broader volatility across crude and product markets.

MR (Medium Range) and LR-based Trades in the MEG and Adjacent Corridors

The MR market in the MEG and adjacent corridors continued to reflect a nuanced mix of upward momentum and pockets of caution. After a period of steady gains, the Market Reference Metrics showed an uptick in several MR routes, aligned with improved sentiment in the mid-size clean segment and the MEG’s ongoing role as a major hub for energy products. The TC17 index’s ascent to WS222.86 reinforced a positive trajectory for 35,000 MEG/East Africa trades, echoing broader MEG demand signals that support a healthier MR market in the near term.

In the UK-Continent corridor, MR fixtures trended higher, reinforcing the notion that European demand for refined products was resilient enough to sustain modest rate improvements. The TC2 index’s movements were a key barometer for how close-to-home clean trades operate in a tight, multi-origin environment where MEG/West Africa and Atlantic-origin cargoes converge with European refining needs. The MR sector’s performance underscored the ongoing importance of MEG-origin cargoes and the need for reliable tonnage to meet transcontinental demands for refined products.

From a global perspective, the MR market emphasized the interplay between energy supply chains and shipping capacity. As MEG demand remains a central pillar, the MR segment’s health will closely track refinery throughput, product balances, and strategic inventory moves by major consuming nations. The week’s data suggested a scenario in which MR and LR trades could continue to exhibit resilience, particularly on routes where cargo viability aligns with refinery run rates and cross-regional demand.

VLCC

The Very Large Crude Carrier (VLCC) segment continued to adjust to a market that was softening slightly in typical long-haul routes while still offering pockets of profitability. The 270,000 mt Middle East Gulf to China route (TD3C) showed a week-on-week decline of 5 points, moving to WS58.10. This rate translates into a round-trip Time Charter Equivalent (TCE) of roughly US$37,997 per day, using Baltic vessel parameters for the calculation. The Atlantic market for the 260,000 mt West Africa/China (TD15) route fell about 2.5 points to WS59.83, corresponding to a round voyage TCE of approximately US$40,610 per day. Meanwhile, the rate for the 270,000 mt US Gulf/China (TD22) route was reported at US$210,000 less than the prior week, at US$8,122,500, which still equates to a daily round-trip TCE around US$42,167. Relative to the same period last week, this is only about US$700 per day lower, illustrating that while the market has softened, the long-haul pricing ladder remains structurally supportive.

On a separate long-haul leg, the TD6 route of 135,000 mt CPC/Med demonstrated a sizeable retreat of around 10 points to WS103.75, indicating a deeper correction in a route historically sensitive to Middle East supply dynamics and European demand. This movement translates into a daily TCE of around US$41,640 for a round trip, highlighting how changes in a single route’s rate can ripple through the VLCC ecosystem and affect the economics of longer voyages.

In the Middle East, the TD23 route for 140,000 mt ME Gulf to the Mediterranean (via Suez) hovered in the WS89-90 range, signaling cautious but stable demand for long-haul crude shipments through the Suez Canal corridor. Across extra-regional markets, VLCCs remained a focal point for energy traders, given the scale of the routes and the strategic importance of MEG and West African crude flows to global refiners. The week’s data suggested that while the VLCC market faced some downward pressure on more established long-haul routes, the overall long-term trajectory remained anchored by ongoing demand for Middle East crude and the evolving global oil balance.

Owners and operators watching the VLCC space would have noted the tension between a traditional seasonal softness in some routes and the potential for multi-month positive inflections as refinery margins and demand patterns evolve. The market’s sensitivity to geopolitical developments, OPEC+ policy, and refinery maintenance cycles means that even as current rates softened, there remains latent upside for the right cargo mix and discharge windows.

Suezmax

Suezmax activity mirrored the mixed sentiment seen in other large crude carrier segments, with owners feeling the pressure on several routes while some corridors found support in steady demand. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) fell by six points to WS85, translating into a daily round-trip TCE of about US$33,818. The TD27 route (Guyana to UK Continent with 130,000 mt) saw a three-point dip to WS84.06, equivalent to a daily round-trip TCE of about US$32,978 based on discharge in Rotterdam. These movements underscored the sensitivity of Suezmax economics to shifts in West African and Caribbean cargo flows, where opportunistic fixtures can anchor a route’s performance even amid broader sector softness.

For the CPC/Med corridor, the TD6 route at 135,000 mt experienced around a 10-point fall to WS103.75, with the implied daily TCE around US$41,640 for a round-trip, highlighting how long-haul loads and discharge flexibility can influence a vessel’s profitability in a market that is often more volatile than its VLCC counterpart. In the Middle East sector, the TD23 route’s performance remained anchored around WS89-90, indicating that crude movements through the Suez and into the Mediterranean region continue to operate within a narrow band of profitability, but with a clear sense of price discipline from both sides of the deal.

The Suezmax segment’s week reinforced the notion that larger crude carriers continue to face a bifurcated landscape: certain routes experience sustained demand from regional producers and refiners who require strategic delivery windows, while others, particularly those reliant on West African streams, face softer sentiment. The evolving balance between crude supply, refinery demand, and seasonal maintenance schedules will play a key role in shaping the Suezmax market in the weeks ahead, with potential upside tied to refinery margins and the pace of long-haul trade re-engagement.

Aframax

Aframax performance this week presented a mixed, but disciplined, pattern that reflected regional demand nuances and port-specific dynamics. In the North Sea, the 80,000 mt Cross-UK Continent route (TD7) remained flat at WS110, reflecting a stable but not escalating environment, with a calculated round-trip TCE of just over US$29,000, based on a Hound Point to Wilhelmshaven discharge scenario. The Mediterranean’s 80,000 mt Cross-Mediterranean route (TD19) faced ongoing downward pressure, losing 7 points since the prior week to WS122.5 for Ceyhan to Lavera runs, indicating a more cautious stance in this corridor and a likely supply-demand mismatch on short-haul Mediterranean trades.

Trans-Atlantic activity favored shorter-haul business, with the 70,000 mt East Coast Mexico/US Gulf route (TD26) anchoring near WS132.5, and the 70,000 mt Covenas/US Gulf route (TD9) dipping slightly to WS130, translating into daily round-trip TCEs of about US$24,800 and US$24,000 respectively. The longer and heavier TD25 route, 70,000 mt US Gulf/UK Continent, firmed by 12.5 points to WS156.67, delivering a round-trip TCE of roughly US$38,214 per day on a Houston/Rotterdam assessment. This suggests a nuanced regional balance where trans-Atlantic cargoes retain some pricing power despite broader weakness in other corners of the Aframax market.

Across the Atlantic and into the broader European theater, the 70,000 mt TD7 routes and related cross-UK/Continental movements remained anchored by discharge windows and port readiness, pointing to a market that is more responsive to cargo timing and vessel availability than to aggressive rate escalation. The week’s Aframax activity demonstrates the degree to which regional demand, port congestion, and discharge flexibility can shape outcomes for owners and charterers. It also indicates how Aframax fleets, with their flexibility and suitability for a range of ports and cargo types, can still exploit selective opportunities even in a fluctuating climate.

In summary, the Aframax sector experienced a measured week with steadier pricing in some corridors and selective strength in trans-Atlantic trades, underscoring the importance of cargo timing, port access, and regional demand signals. Market participants were advised to watch for shifts in refinery demand, regional port congestion, and the pace of long-haul trade as potential catalysts for the next leg of Aframax movement.

LNG

The LNG market showed a distinct, positive momentum across both Atlantic and Pacific basins, with notable rate increases on key routes for 160,000 cubic meter (cbm) and 174,000 cbm vessels. The market’s strength reflected tighter available tonnage and a broader shift in demand expectations. On the BLNG1 route, Ras Tanura to Chiba (174k cbm) vessels rose by US$4,400 to US$15,300 per day, signaling improving momentum in the Pacific. The same size class saw a US$3,200 rise on the BLNG1 160k cbm route to US$8,600 per day, illustrating a recovery for smaller tonnage.

In the Atlantic, the BLNG2 route from Sabine to the UK Continent jumped by US$10,800 for 174k cbm vessels, closing at US$19,400 per day, with 160k cbm tonnage following suit with an US$8,900 gain to US$10,400 per day, highlighting a clear uptick in earnings for smaller LNG carriers and marking a notable positive sentiment swing for Atlantic trade lanes. The BLNG3 Sabine to Tokyo route delivered even stronger gains, with 174k cbm vessels rising by US$12,600 to US$24,600 per day, and 160k cbm units climbing by US$10,800 to US$14,000 per day, underscoring the robust demand for LNG across both transpacific and cross-Atlantic routes.

In the term market, six-month rates rose by US$800 to US$16,000, while one-year rates declined by US$825 to US$22,425; three-year rates increased by US$850 to US$46,750. These shifts suggest a market expecting continued momentum in LNG trade while balancing longer-term capacity against near-term supply discipline. The overall week’s performance painted a broad, constructive picture for LNG shipping, with both 160k cbm and 174k cbm segments showing meaningful rate increases, particularly in the Atlantic basin. The market’s momentum is influenced by vessel availability and broader energy-market conditions, with sentiment turning more positive as traders forecast continued appetite for LNG deliveries and the higher use of mid- to long-term charter contracts.

LPG

The LPG market carried forward the upward trajectory from the previous week, indicating a steady sentiment among participants who expect tightness to persist on several routes. In the BLPG1 Ras Tanura to Chiba corridor, rates declined by US$1.58, landing at US$44.50 per day, while TCE earnings dropped by US$308 to US$26,088, reflecting a modest retracement in some segments due to vessel availability and the turbine of supply and demand in related trades. In the Atlantic, the BLPG2 Houston to Flushing route saw a marginal uptick of US$0.44 to end at US$47.75, with TCE earnings increasing by US$2,372 to US$42,813, highlighting improving earnings potential despite relatively stable freight rates. The BLPG3 Houston to Chiba route remained unchanged at US$91.33, showing no rate movement week over week, but TCE earnings advanced by US$1,212 to US$27,771, signaling stronger returns despite steady freight levels.

The LPG segment’s steady upward trend, despite minor pullbacks on certain smaller corridors, reflected a market confident in continued demand for propane, butane, and other LPG cargoes across global distributors and consuming markets. The rate movements were consistent with a broader energy shipping narrative in which markets respond to refinery maintenance, regional demand, and the balance of supply and long-haul shipping capacity.

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Conclusion

The weekly Baltic Exchange report for February 28, 2025 paints a multifaceted portrait of a shipping market undergoing a notable transition. Capesize vessels led the charge with a pronounced uptick in rates across both the Pacific and Atlantic basins, fueled by robust miner and coal demand and a tightening tonnage list. The momentum in Capesize markets was reinforced by the strength of the C5, C3, and related indices, suggesting a broad-based demand revival that could shape early-March fixtures, particularly on long-haul routes feeding major steel-producing regions. In contrast, Panamax markets faced meaningful pressure on Atlantic routes and broader softness in several corridors, although Asia displayed pockets of resilience due to steady enquiry and fixture activity. The Ultramax/Supramax space showed a pause after recent gains, with a mixed environment across Atlantic, US Gulf, and Asia-oriented routes, underscoring the sensitivity of smaller bulkers to cargo timing and regional tonnage dynamics.

Handysize continued to display resilience in the Continent and Mediterranean, with supportive fixing in the South Atlantic and notable fixtures in South America, even as U.S. Gulf activity remained more subdued. The Clean LR2/MEG and LR1 segments held a steady course, reflecting MEG-driven demand and the ongoing importance of long-haul clean trades in the global energy complex. The MR market’s trajectory remained tethered to MEG demand and Atlantic corridor dynamics, underscoring the segment’s critical role as a bridge between crude and refined product flows. In the crude arena, VLCCs and Suezmaxes navigated a market characterized by selective strength and pockets of softness, with long-haul routes exhibiting a resilient core even as rate declines appeared on some corridors. The Aframax segment delivered a more mixed set of outcomes, with regional and trans-Atlantic trades illustrating the sector’s susceptibility to cargo timing and port constraints.

LNG and LPG were major bright spots, delivering sharp rate improvements on key routes and reinforcing the structural strength of energy shipping in the near term. The LNG space benefited from tighter tonnage and stronger demand signals in both Pacific and Atlantic theaters, while LPG movements reflected a steady, positive tone on several corridors despite occasional pullbacks tied to vessel availability.

Looking ahead, the market will hinge on cargo flows, refinery utilization, port efficiency, and ballast discipline. The Capesize strength may extend into early March if miner and coal demand holds and ballast lists stay tight. Other segments could see selective gains as cargoes reappear in underperforming corridors or as longer-term contracts provide more visibility. Market participants should watch for shifts in refinery margins, policy developments affecting crude and energy product trade, and the tempo of new fixtures that could set the tone for the weeks ahead. The Baltic Exchange’s ongoing reporting remains a critical navigational tool for operators, traders, and investors seeking to understand the evolving landscape of global dry bulk, tanker, LNG, and LPG shipping.