Shipping markets stabilized this week following the June 24 ceasefire between Israel and Iran. While war-risk premiums and freight rates declined slightly, operational risks in the region remain. Tanker markets softened from recent highs, while the LPG segment held steady.

Ceasefire tempers tanker earnings
The tanker market pulled back as tensions in the Middle East eased, with average crude earnings dropping to around USD 40,000/day, with the Suezmax segment showing the most strength. War-risk premiums declined modestly but remained elevated. Product tankers held firmer, supported by ongoing rerouting via the Cape and Red Sea. Despite resumed port calls in Haifa, risks around the Strait of Hormuz – including GPS interference and recent incidents – continue to warrant close monitoring.

LPG rates ease, but fundamentals stay strong
The LPG market remains strong, supported by limited tonnage availability ex-US, despite a slight dip in spot rates to USD 63,874/day (-5% week-on-week). Looking ahead, the market is expected to hold firm, driven by rising US exports, an open West-East arbitrage, and the start-up of a new US facility with capacity of 700,000 barrels – potentially requiring 14–16 additional VLGCs, according to Clarksons.

PCTC demand remains firm
The car carrier market remains resilient after a period of falling earnings from the second half of 2024, supported by recent steady growth in EU registrations and strong Chinese EV exports.

Summer break – we’ll be back in August
We’re taking a short break from the newsletter in July, but we’ll be back in August with fresh market updates. Thank you to all our readers for your continued interest and support. Wishing you a wonderful summer.