Fuel and Freight Daily Update - 1/7/26

01/08/2026

All prices reflect end-of-day settlements from January 6th, 2026

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C04): -9.50

• Jet Fuel 54g (C05): -20.00

Clean Tankers:
Clean-product tanker markets remain under pressure as early-January activity continues to rebuild slowly. Prompt tonnage availability in the U.S. Gulf remains elevated, and while post-holiday inquiries are gradually returning, cargo volumes are still insufficient to materially tighten vessel lists. Owners continue to compete on rates to secure employment, keeping near-term sentiment cautious.

Crude Tankers:
Crude freight remains steady with a supportive undertone. A meaningful portion of VLCC and Suezmax tonnage remains tied up on long-haul and extended voyages, limiting effective supply. Although spot demand is improving only incrementally, these structural constraints continue to underpin rate floors across key long-haul routes.

LNG Shipping:
LNG freight remains firm. Winter demand continues to absorb vessel availability, particularly in the Atlantic Basin, and extended voyage durations are keeping ships committed. Charterers remain active securing both prompt and forward cover, allowing owners to retain pricing leverage despite still-thin early-year liquidity.

Dry Bulk & General Freight:
Dry-bulk and container markets are reopening gradually. Some improvement is being seen in bulk commodity flows, but overall demand remains uneven. Excess vessel capacity continues to weigh on container and general cargo markets, limiting upside and keeping rate momentum muted.

Overall Outlook:
Freight markets remain bifurcated to start the year. Crude and LNG segments continue to benefit from structural tightness and seasonal demand, while clean-product tanker and container markets remain pressured by oversupply and slow-to-recover cargo activity. A clearer directional shift is likely dependent on how quickly post-holiday trade flows and industrial demand normalize through January.

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