Research Reports

Arbs continue to fluctuate wildly amid see-sawing refined product prices while the war

The newbuilding market thrives with Chinese yards active, while geopolitical tensions in the Strait of Hormuz and El Niño impacts bolster shipping costs, necessitating a strategic focus on fleet modernization amid record profits.

The Capesize market strengthened with BCI 5TC rising to USD 46,601, while Panamax P5TC reached USD 20,834, amid robust Atlantic demand; however, India's coal sector faces supply chain challenges amid declining thermal coal imports.

Product tankers East of Suez had a successful week, while crude tankers struggled across the board.

WCSA dry cargo rates reflected lowered sentiment due to excess Handysize tonnage, with Supramax/Ultramax rates averaging USD 25.5, yet forecasts indicate potential recovery towards year-end amidst port congestion challenges.

The dry bulk fleet increased by 2.4 per cent in 2026 with 326 deliveries and 232 scheduled, countered by an aging fleet comprising 15.3 per cent older than 20 years, highlighting persistent newbuilding cost pressures.

The shipping industry's green transition is hindered by diluted IMO regulations, while drought conditions in Europe elevate transport costs and threaten economic growth.

Geopolitical tensions escalate with Japan's protests over Putin's visit to Iturup, Saudi Arabia's military pact with Pakistan and Turkey, Syria cutting Russian oil imports, and renewed LNG development in Mozambique amid the ongoing Iran conflict.

The US announces more sanctions as the standstill in the Middle East continues, but oil prices fall.

Varying gasoline prices in Europe are impacting arbs to the US, while rising diesel European prices have closed the US Gulf - Europe arb, but prised open the reverse route.

Ukraine's need for Patriot missiles grows amid Russian attacks, while US sanctions on Iran threaten Strait of Hormuz shipping.

Newbuilding trends highlight Korean yards’ recovery alongside ongoing competition from Chinese shipbuilders, while tanker and dry bulk markets show firming values driven by strong buyer demand and anticipated Q4 momentum.