Category: Blogs

Middle Distillate Strength and Storage Strain: How September’s Market Dynamics Shape the ARA Outlook

September 2025 was a month of contrasts: crude prices rose on supply fears, middle distillate cracks strengthened on reduced exports, yet storage economics stayed firmly negative. While volatility eased, the forward curves maintained a backwardated structure—pressuring storage operators but driving strong throughput flows. From an ARA perspective, this combination of bullish fundamentals and constrained economics reinforces the importance of agility and product flexibility in terminal operations.

1. Crude Prices Strengthen Amid Supply Risks

Brent crude gained more than 4% during the month, closing around $69–70/bbl in late September. Prices were driven upward by Russia’s decision to extend its diesel export ban until the end of the year, ongoing Ukrainian drone attacks on Russian refining infrastructure, and tightening global inventories.
Meanwhile, the US market added further support after GDP growth for Q3 was revised upward to 3.8% annualised, raising optimism for continued fuel demand.

Strategic takeaway: The upward trend in prices reflects an increasingly fragile supply environment. For ARA terminals, it reinforces the likelihood of higher throughput and re-export activity as Europe substitutes missing Russian product with imports from the Middle East and the US.

2. Forward Curves: Steep Backwardation Persists, with Hints of LSFO Contango

The September forward curve analysis (pages 2–3) shows that middle distillates remained in steep backwardation, while light ends such as gasoline and naphtha softened. Interestingly, the LSFO (low-sulphur fuel oil) curve developed a small short-term contango of about $2/ton, the first in months.

Strategic takeaway: While the LSFO contango is too small for a viable storage play, it may signal the start of a market rebalancing, with some product segments edging closer to oversupply. For terminals, this is a subtle but important signal to prepare for potential changes in tank utilisation toward fuel oil and blending operations.

3. Storage Economics: Still Deeply Negative

All major product categories remained below the breakeven threshold throughout the month:

  • RBOB: -€6.91 (M1–M3), -€3.51 (M1–M6)
  • EBOB: -€13.30 (M1–M3), -€7.08 (M1–M6)
  • LS Gasoil: -€8.59 (M1–M3), -€7.94 (M1–M6)
  • Jet Kerosene: -€5.85 (M1–M3), -€6.11 (M1–M6)

These negative breakeven rates clearly indicate that storage remains unprofitable, with traders unwilling to commit to long-term leasing.

Strategic takeaway: Terminals should prioritise throughput-driven contracts and operational services such as blending, additive handling, and barge coordination. This focus mitigates the impact of backwardation on revenue while preserving client engagement.

4. Product Cracks: Middle Distillates Dominate, Light Ends Lag

As seen on page 9, product crack spreads showed a clear divergence:

  • Jet and diesel cracks rose by more than 9% week-on-week, supported by reduced Russian exports and strong seasonal aviation demand.
  • Gasoline and naphtha cracks fell sharply (gasoline -7.5%, naphtha -19.6%), signalling the end of summer demand and weaker petrochemical activity.

ARA gasoline stocks rose 3% to their highest level since July, driven by stronger blending activity and congestion at Amsterdam terminals as barges lined up to discharge components. Meanwhile, middle distillate imports into ARA increased modestly, though demand up the Rhine slowed due to high water levels.

Strategic takeaway: The product market divergence confirms a shift toward distillate-centric demand in Europe. Terminals with flexible tank configurations—able to switch between gasoline and gasoil—are best positioned to capture this evolving flow pattern.

5. Regional Stock Dynamics: ARA in Focus

The Global Oil Stocks data on page 11 shows a mixed picture:

  • USGC: Light ends decreased slightly (-0.50 Mcbm 3-month trend), while middle distillates grew modestly.
  • ARA: Light ends averaged 2.4 Mcbm with a neutral short-term trend, middle distillates around 3.6 Mcbm, and heavy products roughly 1.2 Mcbm.
  • Singapore: Stocks trended downward, especially for heavy products (-0.59 Mcbm over 3 months).
  • Fujairah: Stable middle distillates, but heavy stocks declined 24% m-o-m after reaching multi-year lows earlier in the quarter.

Strategic takeaway: ARA’s stable inventory base underscores its continued role as Europe’s primary redistribution hub, even as global stock patterns fragment. Maintaining operational readiness for regional arbitrage opportunities—especially toward the Med and West Africa—remains essential.

Conclusion: Managing Tightness Through Flexibility

September’s market dynamics underline a fundamental truth for the tank terminal industry: when storage economics falter, flexibility becomes the main differentiator.

  • Crude and product prices are supported by supply risk rather than demand strength.
  • Forward curves suggest backwardation will persist into Q4.
  • Light ends weaken, while middle distillates remain the revenue driver.

For ARA terminals, the challenge lies in balancing strong product movement with structurally weak storage incentives. Operators that enhance service versatility, streamline throughput handling, and maintain readiness for arbitrage-driven flows will be best placed to thrive in this tight yet dynamic market.

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Rhine Freight Market: Demand Resurgence Amid Falling Water Levels

The Rhine freight market strengthened in early October as declining water levels and a seasonal shift to winter-grade products spurred new activity. Freight rates rose steadily across most destinations, supported by increased spot deals and logistical constraints at key terminals. While overall fundamentals remain fragile, hydrological tightening and operational inefficiencies provided short-term upward pressure on prices.

1. Freight Rates: Broad-Based Increases Across the Rhine

Freight rates climbed throughout the week, with the most pronounced gains on Upper Rhine routes:

  • On 6 October, rates were largely steady, with Basel increasing modestly by €1.16 to €23.61/ton, while other destinations remained unchanged.
  • By 7 October, spot activity surged, leading to strong price rises: Basel jumped by €2.71, Strasbourg +€2.00, Karlsruhe +€1.50, and Frankfurt +€0.25.
  • 8 October extended the rally, with Basel climbing another €2.16 and Cologne +€1.00, amid heightened demand and tightening intakes.
  • On 9 October, freight rates continued to rise modestly, especially on Upper Rhine routes—Basel, Strasbourg, and Karlsruhe all added €0.50–€1.00.
  • The week closed on 10 October with a final surge: Strasbourg +€3.00, Basel +€2.50, Cologne +€1.50, and Karlsruhe +€1.00, with all destinations showing week-on-week gains of 10–20%.

Takeaway: Rates across the Rhine corridor rose sharply, led by Upper Rhine destinations as falling water levels constrained intakes and boosted logistical costs.

2. Water Levels: Rapid Decline and Tightening Intakes

Falling Rhine water levels were the dominant driver of rate increases:

  • Maxau dropped from 478 cm on 6 October to 460 cm by 10 October, with forecasts showing a further decline to 438 cm and potentially below 400 cm the following week.
  • Kaub fell from 169 cm to 170 cm early in the week and was forecast to hit 141 cm by 10 October, possibly reaching 100 cm in the week ahead.
  • Load restrictions for 110-meter barges tightened to 1,500–1,600 tons on Upper Rhine sections by midweek.

Takeaway: Falling water levels limited barge capacity and provided upward rate momentum, particularly on long-haul routes to Basel and Strasbourg.

3. Market Activity: From Slow Start to a Burst of Deals

Spot market activity mirrored the tightening hydrological conditions:

  • Early in the week (6 October), only two deals/offers were reported, reflecting limited urgency.
  • On 7 October, activity spiked to 12 new deals, marking the busiest day since August as charterers moved to secure tonnage ahead of lower drafts.
  • This momentum carried into 8 October, with 14 new fixtures, surpassing the prior day’s high.
  • Toward week’s end, 9–10 October, activity eased slightly (9–10 reported deals) but remained strong as operators and charterers finalized short-term logistics ahead of forecasted draft constraints.

Takeaway: Spot activity surged as market players rushed to fix voyages before worsening water conditions restricted loadings.

4. Structural Drivers: Seasonal Demand Meets Logistical Strain

Several factors combined to amplify midweek momentum:

  • The switch to winter-grade fuels boosted short-term distillate demand, increasing inland flows to Germany, France, and Switzerland.
  • Operational delays at EVOS Amsterdam and BP Gelsenkirchen (forcing diversions to Bottrop) added friction to loading schedules.
  • Despite improved demand, ample barge availability capped the magnitude of price hikes, as operators still had idle capacity outside Upper Rhine segments.

Takeaway: Seasonal fuel demand, combined with logistical challenges and water-level constraints, underpinned the week’s rally.

5. Outlook: Near-Term Firmness, Mid-Term Uncertainty

Looking forward:

  • The freight market is expected to remain firm in the short term, supported by falling Rhine levels and ongoing logistical bottlenecks.
  • However, structural weaknesses—persistent backwardation, high barge availability, and uneven inland demand—may limit sustained price gains once water levels recover.
  • Traders and freighters anticipate volatile pricing through mid-October, contingent on hydrological trends and refinery logistics.

Takeaway: The rally may persist temporarily, but structural headwinds will prevent lasting strength unless demand fundamentals improve.

Conclusion: A Hydrology-Driven Rally

The Rhine barge freight market between 3 and 10 October marked a clear shift from stagnation to activity. As water levels dropped and seasonal transitions took effect, rates surged—especially for Upper Rhine destinations. Yet, beneath the surface, fundamentals remain weak. Without a sustained rise in product demand, this rally looks more like a hydrological correction than a long-term recovery.

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ARA Freight Market: Volumes Surge as Delays and Rhine Constraints Drive Demand

The ARA clean petroleum product (CPP) barge freight market ended the first full week of October on a strong note, with freight rates climbing steadily and spot volumes rebounding sharply. The combination of Rhine water level declines, terminal congestion, and month-end contract expiries fueled renewed demand for tonnage. The result was the busiest trading period in nearly two months.

1. Freight Rates: Upward Momentum Returns

Rates firmed across nearly all ARA routes during the week:

  • Early week (3–7 October): Freight rates were initially flat to softer. Cross Harbor and main trunk routes (Rotterdam–Antwerp/Amsterdam) hovered around €1.20–€2.20/ton, with limited variation. On 7 October, rates slipped by €0.02–€0.10/ton as liquidity dried up and daily volume dropped below 30 ktons.
  • Midweek (8 October): Rates stabilized, with minimal changes reported and operators describing the market as calm but balanced. Total volume was around 33 ktons.
  • 9–10 October: A dramatic turnaround followed. On 9 October, rates surged by €0.05–€0.10 across most routes—Cross Harbor rose to €1.31, Rotterdam–Antwerp/Amsterdam to €2.27, and Antwerp–Amsterdam to €3.25, supported by rising demand and Rhine-linked shortages.
  • The trend extended into 10 October, with another €0.05–€0.10 increase across all major routes. Total rates for Cross Harbor, Antwerp–Amsterdam, and Ghent–Amsterdam reached their highest levels since early August, averaging €1.34, €3.32, and €4.00/ton, respectively.

Takeaway: A strong end to the week reversed earlier weakness, confirming the first synchronized upward trend in ARA freight rates since midsummer.

2. Spot Volumes: From Multi-Week Lows to Near Record Highs

  • On 3 October, volumes totaled 36.6 ktons, the lowest of the week, as freighters reported difficulty securing clients amid weak weekend demand.
  • 6–8 October remained sluggish, with daily totals between 30–38 ktons, weighed down by slow spot inquiries and delays at ARA terminals.
  • 9 October marked a dramatic rebound, with 81.9 ktons traded, more than doubling previous days’ volumes.
  • By 10 October, the upward momentum peaked: nearly 93.4 ktons were recorded, the highest daily total since July, reflecting both operational congestion and Rhine-linked redistribution needs.

Takeaway: ARA spot activity surged late in the week, driven by Rhine constraints and delayed cargoes rolling forward into October loadings.

3. Product Trends: Broad-Based Strength but Distillates Lead

  • Middle distillates dominated trading, accounting for most of the late-week rebound. On 9 October, distillate-related fixtures rose sharply as Rhine draft restrictions forced additional short-haul ARA deliveries.
  • Light ends (gasoline and blending components) also improved but lagged slightly due to continued discharge delays at Amsterdam terminals. Despite this, Antwerp–Amsterdam and Flushing routes saw rate increases of up to €0.05/ton.
  • By 10 October, the gap between product classes had narrowed, reflecting broad-based strength across all segments.

Takeaway: Distillate freight drove the rebound, but congestion-induced flexibility needs supported light ends as well.

4. Operational Context: Congestion and Rhine Pull

  • Persistent terminal delays in Amsterdam, especially at Evos East and West, continued to disrupt planning and tie up tonnage. Several vessels waited offshore for discharge slots through midweek.
  • Falling Rhine water levels increased demand for smaller, shallow-draft barges to maintain inland supply, tightening barge availability in the ARA region. This effect intensified from 9 October onward, pulling vessels upriver.
  • Meanwhile, the ICE Gasoil October expiry (settling at $669.75/ton on 10 October) further accelerated late-week barge activity, with traders clearing outstanding positions before contract rollover.

Takeaway: Logistical friction combined with Rhine-driven fleet redistribution to tighten supply and elevate ARA freight rates.

5. Market Outlook: Short-Term Firmness, Structural Caution

Looking forward:

  • The near-term outlook remains firm, supported by ongoing Rhine restrictions and residual ARA congestion.
  • However, underlying fundamentals—ample barge supply, muted downstream demand, and seasonal refinery transitions—are likely to cap the rally.
  • Barring further hydrological deterioration, the ARA market may see rates plateau in the coming week.

Takeaway: The market’s newfound strength is likely short-lived, driven by logistics rather than lasting demand improvement.

Conclusion: Congestion-Fueled Revival

The ARA barge freight market between 3 and 10 October shifted sharply from inertia to intensity. Rates rose across all major corridors as spot demand rebounded, volumes surged, and logistical disruptions multiplied. Yet, the rally’s foundation remains fragile—anchored more in operational tightness and Rhine constraints than in underlying trade growth. Freight professionals should expect continued volatility as October unfolds.

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ARA Freight Market: A Volatile Week Ends in Declines

The final week of September and the start of October saw a turbulent but directionless ARA barge market. Spot activity fluctuated sharply, while freight rates slipped steadily, with middle distillates and light ends both losing ground by the week’s end. Operationally, persistent congestion and logistical inefficiencies remained defining features of the market.

1. Freight Rates: Steady Drop After Brief Midweek Support

Freight rates weakened over the week despite occasional volume spikes:

  • 25 September: The week opened on a stronger tone, with middle distillate rates rising by up to €0.22/ton, supported by higher deal counts and continued ARA delays. No empty barges were reported, and overall activity exceeded 90 ktons.

  • 26 September: Rates reversed direction, with middle distillates falling €0.05–€0.16/ton as the week closed quietly and volumes dropped to 41.8 ktons, the lowest all week.
  • 29 September: Light ends rose slightly amid continued delays at Evos Amsterdam, but middle distillates held steady. Daily volumes reached 40.5 ktons[RV1] , showing a further reduction.
  • 30 September: Marginal downward corrections returned, with middle distillates slipping €0.01–€0.04/ton, while light ends held mostly flat. Volume rose slightly to 46 ktons, bolstered by end-of-quarter FAME demand.
  • 1 October: The new month opened quietly. Freight rates were stable-to-soft, with some minor declines across key routes, despite volumes recovering to 50 ktons.

Takeaway: Rates declined overall, erasing midweek strength. Middle distillates bore the brunt of downward adjustments.

2. Spot Volumes: Busy Start, Quiet Finish

Spot market activity fluctuated throughout the week:

  • Peak volume was recorded on 25 September, at 90.6 ktons, as operators scrambled to clear backlogs from ongoing ARA port delays.
  • The lowest point came on 29 September, with just40.5 ktons registered as distillate demand faded and many traders stepped back ahead of quarter-end.
  • Volumes recovered slightly after the weekend, with 40–50 ktons traded daily through early October, reflecting moderate but unsustained activity levels.

Takeaway: The ARA market remains patchy, alternating between bursts of logistical activity and lulls in fresh demand.

3. Product Trends: Light Ends Resilient, Distillates Weak

  • Middle distillates experienced consistent rate erosion, with freight levels falling by €0.05–€0.20/ton across routes. Despite strong early-week flows, prices softened as demand waned later in the period.
  • Light ends saw mixed sentiment: minor upward corrections midweek followed by a stronger drop into 2 October, despite high naphtha activity and a doubling of volumes relative to distillates.
  • The narrowing rate spread between the two segments underscored a fragile, over-supplied freight environment.

Takeaway: Even where light ends were active, rates couldn’t find upward traction in an oversupplied system.

4. Operational and Structural Dynamics

  • Terminal congestion remained a dominant feature, particularly at Evos Amsterdam and Botlek terminals, where long waiting times limited scheduling flexibility.
  • Barge availability improved slightly midweek but reverted by 2 October, with several operators reporting idle tonnage despite heavy port delays.
  • The overall freight market continues to reflect structural weakness, with high barge supply and muted downstream demand keeping rate ceilings low.

Takeaway: Operational congestion may be masking deeper structural softness in the ARA barge market.

5. Outlook: Fragile and Flat

Looking into early October:

  • ARA barge freight rates are likely to remain rangebound or drift lower, with market participants noting little incentive for speculative movement.
  • While inland logistics could tighten slightly if Rhine levels continue to fall, ARA’s impact will remain limited, given weak underlying demand.
  • Light ends may continue to dominate activity, but rate support will depend on sustained refinery and blending demand.

Takeaway: Unless a new catalyst emerges—such as stronger refinery throughput or inland drawdown—the ARA barge freight market is set for another quiet stretch.

Conclusion: Activity Without Acceleration

The final days of September highlighted a market defined by movement without momentum. Despite high midweek volumes and persistent congestion, freight rates slipped across both product segments. The ARA market remains operationally busy but commercially soft—a dynamic unlikely to shift until regional demand improves or supply constraints bite more deeply.

 [RV1]This does not seem like a rebound since it is lower than the previous day.

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Rhine Freight Market: Low Demand and Falling Water Levels Keep Market in Check

Late September and early October brought a combination of weak spot demand, declining water levels, and unchanged freight rates across the Rhine corridor. While logistical challenges such as strikes and hydrological changes briefly captured attention, neither was sufficient to lift trading momentum or pricing.

1. Freight Rates: Static Despite Varied Influences

Freight rates across all Rhine destinations remained largely stable through the period:

  • 25–26 September: Rates fell slightly across most routes, with Basel losing about €1/ton, reflecting soft market sentiment amid low demand and healthy barge availability.
  • 29–30 September: Despite a worsening hydrological outlook, rates stayed flat, as traders noted no urgency to move product. Spot market activity was limited to a few small fixtures.

Takeaway: The Rhine freight market remained effectively frozen in price terms, with little evidence of upward pressure despite tightening drafts.

2. Water Levels: Decreasing, Yet Still Manageable

Hydrological conditions continued to deteriorate but remained workable:

  • Maxau dropped from 572 cm on 26 September to around 507 cm by 1 October, with forecasts suggesting further declines toward 480–490 cm by 5–6 October and possibly 450 cm by mid-month.
  • Kaub slipped below the 230 cm mark by 1 October, and forecasts pointed toward 175–180 cm shortly thereafter.
  • While these lower drafts reduced intakes on some Upper Rhine routes, they were not yet severe enough to trigger price volatility.

Takeaway: Water levels declined steadily, but efficient load management kept freight rates steady for now.

3. Market Activity: Minimal Spot Demand

Trading volumes remained weak throughout the week:

  • 25–26 September: Only two to three deals were registered per day, reflecting a lack of fresh demand.
  • 29–30 September: Activity stayed subdued, with operators focused on contractual obligations rather than spot fixtures.
  • 1 October: Just one deal was reported, underlining the market’s inertia.

Operators indicated that they were seeking opportunities in the ARA region to compensate for thin Rhine business.

Takeaway: The spot market remains directionless and dominated by short-term, low-volume logistics.

4. External Factors: Strikes, Backwardation, and Quality Shifts

  • Strikes at locks along the Grand Canal d’Alsace (Mackolsheim, Rhinau, Gerstheim, Strasbourg) caused minor delays but no major disruptions to Rhine flows.
  • Persistent backwardation in gasoil continued to suppress speculative stocking and long-haul shipments.
  • Seasonal transitions toward winter-grade products sparked some early planning discussions for October loadings but did not yet translate into tangible demand.

Takeaway: Structural and operational factors continue to suppress volatility, even as autumn supply shifts begin.

5. Outlook: Watching the River, Waiting for Demand

Looking ahead:

  • With forecasts showing Rhine levels continuing to drop through early October, logistical flexibility may start to narrow—particularly for Upper Rhine destinations like Basel and Strasbourg.
  • However, unless product demand or pricing structures change, rate movements are expected to remain flat, with only minor fluctuations around current levels.

Takeaway: The Rhine market is balanced on a knife-edge—tightening hydrology versus slack demand.

Conclusion: Stagnant Freight Amid Shifting Conditions

From 25 September to 2 October, the Rhine barge freight market remained operationally sound but commercially stagnant. Lower river levels, sporadic strikes, and ongoing backwardation failed to generate activity. Freight rates held steady at multi-week lows, with Basel showing the only minimal upward move. Heading into October, the market’s stability feels fragile—dependent on whether hydrological tightening finally outweighs fundamental weakness.

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Rhine Freight Market: High Water, Low Demand, and Unchanged Rates

1. Freight Rates: Mostly Flat, Small Downward Moves

  • On 4–5 September, freight rates held steady across all destinations, with only minor tweaks for Basel (down by €0.02).
  • By 8 September, spot deals were concluded at slightly lower levels, with Duisburg and Strasbourg down €0.25–0.50, and Basel dropping nearly €0.45.

Takeaway: Freight rates are locked in a narrow range, with Basel showing the most movement but still trending lower overall.

2. Water Levels: High and Supportive

Hydrology supported efficient loading throughout the week:

  • Maxau hovered above 500 cm, briefly touching 600 cm on 6 September before easing to 542 cm by the 10th.
  • Kaub remained consistently above 200 cm, with drafts between 277–331 cm, allowing intakes above 2000 tons for 110m barges.
  • Forecasts pointed to gradual declines but still sufficient depths for full operational flexibility.

Takeaway: River conditions remain favorable for Upper Rhine voyages, further reducing upward rate pressure.

3. Market Activity: Thin and Fragmented

  • On 4 September, hardly any demand was reported, with just three deals concluded and most operators busy with COA and time-chartered trips.
  • 5 September saw similarly low activity, with only a handful of spot deals.
  • The busiest day was 8 September, when seven deals/offers were recorded, though volumes were still modest.
  • By 10 September, just one deal was logged, reflecting the week’s underwhelming tone.

Takeaway: Despite sufficient barge supply, demand remains too thin to generate market momentum.

4. Structural Drivers: Backwardation and High Stocks

The market continues to face familiar structural headwinds:

  • Backwardation in gasoil discouraged stockpiling and speculative imports, keeping volumes low.
  • Inland stocks remained adequate, and domestic supply often outcompeted ex-ARA flows, especially for middle distillates.
  • Even with agricultural and transport demand expected for September, fresh spot appetite remained subdued.

Takeaway: Fundamentals remain stacked against a freight rate recovery.

5. Outlook: Waiting for Demand or Draft Pressure

Looking forward:

  • Water levels are expected to drop gradually at Maxau and Kaub, but forecasts suggest they will remain sufficient for efficient intakes.
  • Unless demand picks up from seasonal consumption or refinery disruptions, freight rates will likely remain rangebound.
  • Operators may face further challenges keeping barges employed without deep spot demand.

Takeaway: Any near-term volatility will come from hydrology, not demand fundamentals.

Conclusion: A Market in Standby Mode

The Rhine barge freight market in early September was defined by high water, low demand, and flat rates. Despite ample logistical capacity, trading remained minimal, with Basel the only route showing modest rate shifts. Until stronger demand or water constraints emerge, Rhine freight is set to remain quiet and competitive.

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ARA Freight Market: Thin Volumes, Idle Barges, and Little Price Movement

The ARA clean petroleum product (CPP) barge market entered September with subdued trading, ample barge supply, and only minor rate adjustments. While some midweek activity lifted volumes slightly, the broader picture was one of low urgency, weak demand, and a freight environment that remains firmly in the charterer’s favor.

1. Freight Rates: Sharp Drop Early, Then Stabilization

  • On 4 September, rates fell sharply across nearly all corridors—Cross Harbor down €0.26, Rotterdam–Antwerp/Amsterdam down €0.28, and Flushing routes down €0.21–0.28.
  • 5 September stabilized, with no changes on most routes, though exceptions were seen at higher Cross Harbor levels (3.10 €/ton for 5kton cargoes).
  • 8 September brought minor upward corrections on certain lanes, with Rotterdam–Antwerp/Amsterdam rising €0.02 and Flushing–Rotterdam edging up by the same amount.
  • 9 and 10 September saw rates flat again, with some selective tweaks but no material trend change.

Takeaway: The week started with a sharp correction, but freight rates quickly stabilized into a narrow range.

2. Spot Volumes: Low and Inconsistent

  • 4 September was particularly quiet, with only 26.7 kton traded, well below recent averages.
  • Activity improved slightly to 43.4 kton on 5 September, though operators still described the day as calm.
  • 8 September reached 58.3 kton, the busiest day of the week, as some freighters reported improved demand.
  • 9 September collapsed to just 17.5 kton, reflecting the weakest session in weeks.
  • By 10 September, volumes recovered modestly to 43.8 kton, though still considered “on the lower side” for midweek.

Takeaway: Demand was patchy and inconsistent, with no sustained improvement across the week.

3. Product Trends: Distillates Edge Out Light Ends

  • Middle distillates accounted for most of the activity, particularly on 10 September, when distillate cargoes outperformed both in volume and price.
  • Light ends remained relatively subdued, with several idle barges reported in this segment across the week.
  • The overall price spread between the two product classes remained narrow, though distillates showed slightly stronger fundamentals.

Takeaway: Distillates provided what little momentum existed, while light ends dragged overall performance lower.

4. Operational Environment: Idle Barges and Terminal Delays

  • Despite low demand, idle barges were repeatedly reported, especially in the light ends segment.
  • Terminal delays were noted midweek, particularly for loading at Flushing and at Vopak Europoort, adding minor friction to otherwise smooth operations.
  • Many deals were concluded on PJK B/L or lump sum basis, underscoring cautious forward planning.

Takeaway: Logistical frictions persisted but did little to spur demand or rates.

5. Outlook: Weak Fundamentals Prevail

Looking ahead, the ARA freight market remains fragile:

  • Weak spot demand and ongoing backwardation will continue to cap freight activity.
  • Unless product spreads or arbitrage opportunities open, idle barges and subdued deal flow will keep rates pinned near current levels.
  • Any improvement is likely to be short-lived and volume-driven, not structural.

Takeaway: Stability masks weakness—ARA freight remains oversupplied and under-demanded.

Conclusion: A Market Running at Low Speed

The ARA CPP barge freight market between 4–10 September was characterized by thin trading, idle barges, and narrow rate movements. Despite a brief midweek volume lift, fundamentals remain weak, with distillates offering only limited support. The market is steady, but not strong—waiting for either a demand shock or product arbitrage to revive momentum.

What’s next?

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ARA Freight Market: From Quiet Days to Record Volumes

The final days of August and the start of September brought a split narrative to the ARA clean petroleum product (CPP) barge freight market. While early sessions saw calm trading with minor rate tweaks, the market surged midweek with its largest daily volume of the year, led by strong middle distillate demand. Despite this burst, structural weaknesses—idle barges, backwardation, and limited blending activity—kept overall freight rates under pressure.

1. Freight Rates: Drifting Lower, Then Bouncing Upward

  • On 27 August, rates slipped slightly across most routes, with Cross Harbor, Rotterdam–Antwerp/Amsterdam, and Ghent corridors all adjusting downward by €0.04–0.08/ton.

  • 28 August continued the softness, particularly for middle distillates, where prices edged further down despite volumes nearing 70 kton.

  • 29 August stabilized, with rates mostly flat and only small tweaks around Cross Harbor and Rotterdam–Antwerp.

  • By 2 September, the market was calm again with limited deals (37 kton traded) and small downward adjustments, especially in the light ends segment.

  • 3 September reversed the trend dramatically, with prices rising across nearly all routes—up to €0.27–0.28/ton higher than the prior day, as spot volumes hit a yearly record.

Takeaway: Rates weakened into month-end, but a sharp early-September rebound showed how sensitive the market remains to sudden bursts of demand.

2. Spot Volumes: From Quiet to Explosive

  • Early week volumes (27–29 August) ranged between 49 and 99 kton, with freighters still reporting idle barges, especially in light ends.

  • On 1 September, activity picked up to 65.9 kton, though freighters described it as slower than the week prior.

  • 2 September was the quietest day of the week, at just 37.4 kton, reflecting contract-heavy planning and little fresh demand.

  • 3 September reached 155 kton, the highest daily total of 2025 so far, fueled by middle distillates (108 kton) and supplemented by 47 kton of light ends.

Takeaway: The week highlighted extreme variability, with market mood swinging from calm to record-breaking in just days.

3. Product Trends: Distillates Lead, Light Ends Lag

  • Middle distillates drove most of the week’s activity, especially on 3 September, when operators reported abundant spot requests for gasoil and diesel.

  • Light ends remained more muted, constrained by low blending activity in Amsterdam and Antwerp, as well as discharge delays at Antwerp’s Sea-Tank Q300 terminal.

  • By midweek, the narrowing gap between distillates and light ends was briefly interrupted, but by Friday both categories moved lower again, reflecting weak fundamentals.
  • Blending activity, however, showed signs of picking up by the end of the week, with higher margins encouraging renewed operations.

Takeaway: Distillates provided the volatility, while light ends continued to act as a stabilizer with limited spot demand.

4. Operational Conditions: Mostly Smooth, But Idle Barges Persist

  • For most of the period, terminal operations were smooth, with only Antwerp’s Sea-Tank 300 showing recurring discharge delays.

  • Despite record volumes later in the week, idle tonnage was still reported, particularly in the light ends segment.
  • Many deals continued to be structured on PJK B/L or lump sum basis, reflecting uncertainty about the direction of freight rates.

Takeaway: Even with record activity, overcapacity remains a structural issue in the ARA market.

5. Outlook: Volatile But Fundamentally Weak

  • The record-high trading day on 3 September demonstrated that ARA freight demand can spike suddenly, but structural headwinds—overcapacity, backwardation, and limited blending—will continue to cap rates.

  • Unless demand patterns sustain, the early September rebound in rates could prove temporary, with the market drifting lower again.

Conclusion: A Market of Contrasts

The ARA barge freight market closed August and opened September in a tale of two halves: quiet, contract-driven trading punctuated by one of the busiest days of the year. Rates remain fragile, swayed by bursts of demand but anchored by systemic overcapacity. For barging professionals, the lesson is clear: flexibility and readiness remain key in a market that can shift gears overnight.

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Rhine Freight Market: Muted Activity, Stable Rates, and Mixed Hydrological Signals

The final week of August and the start of September saw the Rhine freight market in a state of low demand, soft trading activity, and stable rates. Despite small daily adjustments on Upper Rhine routes, overall pricing held flat, as oversupply of barges and backwardated product markets continued to weigh on sentiment.

1. Freight Rates: Mostly Flat, Basel Shows Minor Weakness

  • On 27 August, rates dropped across the board, with Basel losing close to 1 €/ton while other destinations fell by 0.50–1.00 €/ton.

  • By 29 August, activity was so quiet that no new spot deals were registered; rates remained unchanged.

  • Into early September, 2 September brought another small downward correction, with Basel shedding about 2 €/ton while Frankfurt, Karlsruhe, and Strasbourg also dipped.

  • On 3 September, all destinations remained flat, with Basel edging marginally lower but still close to its four-week low.

Takeaway: Basel remains the rate that dropped the most, but overall Rhine freight rates stayed anchored by weak demand and high barge availability.

2. Water Levels: Enough Depth, But Forecasts Diverge

  • Maxau held around 494–550 cm through late August, before stabilizing above 520 cm by early September.

  • Kaub moved between 162 cm on 28 August and nearly 200 cm by 2 September, keeping intakes stable at over 2000 tons for 110-meter barges.

  • Forecasts suggested slight increases into early September, which helped keep intakes high and logistical concerns minimal.

Takeaway: Hydrology was supportive, with no immediate draft constraints.

3. Market Activity: Demand Remains Thin

  • Trading activity was extremely light: just 2–6 deals per day on most sessions.

  • On 29 August, no new fixtures were recorded, reflecting complete inertia in the spot market.

  • Freighters struggled to keep barges employed, with many reporting idle tonnage despite operational availability.

Takeaway: Charterers have largely covered their needs via contracts, leaving the spot market with minimal liquidity.

4. Market Drivers: Backwardation and High Stocks

  • Reports consistently highlighted ongoing backwardation, discouraging stockpiling and limiting imports.

  • Ample inland production and sufficient stocks made local supply more attractive than ex-ARA imports.

  • Even with refinery maintenance announced at Shell Pernis from September to November, no near-term demand boost was visible.

Takeaway: Structural market factors continue to suppress Rhine freight demand despite otherwise favorable logistics.

5. Outlook: Low Activity Until a Demand Catalyst Emerges

Looking ahead, Rhine freight rates are likely to remain rangebound unless:

  • Water levels fall significantly, reducing intakes and tightening supply, or

  • Product spreads flatten, encouraging stockbuilding and imports.

For now, both conditions appear unlikely, suggesting continued soft trading into mid-September.

Conclusion: A Market in Stasis

The Rhine barge freight market in late August and early September remained quiet, oversupplied, and structurally weak. Rates are flat, water levels are supportive, but demand is absent. Freight operators face a waiting game—keeping tonnage moving with minimal margin while watching for the next macro or hydrological shift to reawaken the market.

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Refining Pressures, Supply Shifts, and Seasonal Demand: How July’s Oil Markets Tested Storage Strategies

July 2025 unfolded against a backdrop of modest crude price recovery, supply-side adjustments from OPEC+, and refining disruptions that rippled across product markets. While backwardation continued to dominate the forward curve, the month underscored the fragility of margins and the growing influence of regional supply shocks on global trade patterns. For tank terminal operators, these shifts offer both challenges and opportunities—if they act strategically.

1. Crude Prices: Recovery Without Conviction

Brent crude hovered around $68–$70/bbl in early July, supported by easing Middle East tensions, but gains were capped by uncertainty over OPEC+’s planned +411kbpd output increase and concerns about demand softness in China and the US. While the prompt curve remained in backwardation, spreads narrowed from early-month highs, signalling that the market is bracing for possible oversupply later in the year.

Strategic takeaway: Tank terminals should expect short-term trading to stay active due to tight supply, but also get ready for potential demand in longer-term storage if price spreads ease later this year.

2. Refining Disruptions Amplify Middle Distillate Tightness

The insolvency of the UK’s Lindsey Oil Refinery emerged as a significant disruptor. Producing 30–35kt of diesel per week, its troubles sparked fears of higher import needs in Northwest Europe, tightening ICE Gasoil spreads (C1–C2 at $30/ton). This development, combined with seasonal jet fuel demand, pushed gasoil and jet cracks to the highest levels in over a year.

Strategic takeaway: Refinery outages can trigger rapid shifts in product flows and tank utilisation. Terminals should maintain operational flexibility to accommodate sudden demand for middle distillate storage and handling.

3. Storage Economics: Still Negative but Watching for a Turn

Break-even storage rates for July remained well below zero for all major products, meaning storage plays continue to be unprofitable:

  • RBOB M1-M6: ~-€9.12/cbm/month

  • LS Gasoil M1-M6: ~-€11.19/cbm/month

  • Jet Kerosene M1-M6: ~-€6.45/cbm/month

The persistence of unprofitable contango trades reinforces the shift toward throughput-focused business models.

Strategic takeaway: Commercial strategies should emphasise short-term, high-turnover contracts and value-added services until the forward curve moves decisively into contango.

4. Product Market Divergence: Gasoline Softness vs. Middle Distillate Strength

From an ARA market viewpoint, July showed diverging product dynamics. Gasoline stocks rose sharply in the US (+4mb) while ARA stocks fell to their lowest since Feb 2024. Weak US demand (8.6mbpd, below seasonal norms) contrasted with steady Rhine exports and imports from multiple European sources.

Meanwhile, gasoil prices climbed on the Lindsey refinery news, with tighter Atlantic basin markets prompting stocking activity in Fujairah.

Strategic takeaway: Diverging regional dynamics require agile tank allocation and the ability to pivot between import, export, and blending operations at short notice.

Conclusion: Navigating the Second-Half Outlook

July 2025 confirmed that operational agility and commercial flexibility are paramount for tank terminal operators. Refining disruptions, regional demand mismatches, and evolving OPEC+ policies will likely sustain volatility. Those who can quickly repurpose capacity, offer multi-product handling, and anticipate shifts in forward curves will be best positioned to capitalise on opportunities as market conditions evolve.

What’s next?

Are you ready to face your challenges head-on?

We now offer a FREE customized trial to our BargeINSIGHTS tool, an all-in-one platform for liquid bulk barge transport optimization.

With BargeINSIGHTS, you get instant insights into barge freight rates, bunker gas oil prices, water levels, vessel tracking, and barge availability—all in one place. No more time-consuming data collection; everything you need is at your fingertips.

Click here to schedule your demo and get access to BargeINSIGHTS for free!