Shipping markets were broadly steady this week, with tankers supported by higher OPEC+ output, LPG carriers benefiting from strong arbitrage and extended sailing distances, and car carriers showing resilience despite tariff headwinds. Geopolitical developments remain in focus, across segments.

OPEC+ output growth underpins tanker market
Tanker companies may see higher earnings in the months ahead, supported by rising crude oil production from OPEC+ members.

US propane boosting VLGC segment
The VLGC market remains firm, driven by strong US propane production, inventory builds and favorable price dynamics that sustain the freight arbitrage to Asia. Panama Canal congestion and elevated slot auction costs are pushing more vessels to re-route via the Cape of Good Hope, tightening tonnage supply through longer sailing distances. Spot earnings for modern eco vessels reached $76,200 per day this week, marking a 12-month high according to Clarksons.

PCTC performing steadily in face of tariff disruption
The car carrier sector continues to demonstrate resilience despite tariff headwinds. While some volatility has been observed in European trades, volumes out of Asia remain steady. Analysts caution, however, that structural risks from Chinese exports and a heavy newbuilding schedule could limit growth prospects longer term.

Continuing tariff talks impact market flow
Geopolitical risk remains a key market driver. The US and China extended their trade truce for 90 days, maintaining existing tariffs of 30% on US imports from China and 10% on Chinese imports from the US. At the same time, discussions between US and Russian leaders in Alaska highlighted ongoing uncertainty around the Ukraine conflict, with potential implications for energy markets, sanctions and trade flows.