Freight rates weaken on reduced new orders

The USG Supramax spot freight segment looked weak due to the limited fresh orders in the market. Rates were slipping as tonnage continued to pile up for spot laycan dates.

Fixing activity was quite high as owners were looking to secure their positions before the market slips any further.

Supramax freight rates for petcoke from Houston, USA

Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$22/t on average, representing a MoM fall of US$2.50/t.

Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$18/t on average, down US$2.50/t MoM.

Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$43/t on average (-US$3.5/t MoM).

Supramax/Ultramax rates ex-USG may drop amid slow US corn exports to China and cancelled grain sales. Supramax owners will have a tough time as tonnage building up for spot laycans will continue to have a negative impact on transportation costs from regional ports, which do not show any particular prospects in terms of export activity for nearby dates.