LPG and PCTC remain steady – US incentives underway

This week, tanker rates experienced broad-based downward pressure, with average weighted earnings falling 8% week-on-week to USD 32,585/day. The decline is primarily driven by reduced fixing activity across both the crude and product segments.

For context, a modern scrubber-fitted Suezmax is currently earning around USD 52,000/day, down from the low $USD 60,000s last week, according to Fearnleys. Despite the drop, earnings remain at strong levels.

US vehicle production incentives coming up – shipping may benefit
The LPG market has remained stable, with the benchmark Houston-Chiba VLGC route trading at USD 38,400/day, which aligns with last week’s levels.

In the PCTC market, the US government has announced changes to auto import tariffs to incentivise domestic vehicle production. Under the revised rules, automakers building vehicles in the US will benefit from reduced tariffs based on the share of US or USMCA-sourced components, a move that may support domestic assembly and, in turn, long-term demand for vehicle shipping.