By Brannvoll ApS, Denmark
The first half of the month went very well for the Supramax/Ultramax owners in USG. The market was strong with levels increasing considerably as demand remained healthy for December dates and there was minimal tonnage supply to handle an increasing volume of cargo requirements.
Nevertheless, closer to the end of the month, the USG market started getting softer due to limited fresh demand being introduced. Amid the upcoming holidays most requirements with spot dates were already covered, resulting in owners being forced to compete to secure cargoes for their vessels. Petcoke orders represented the major part of available cargoes.
Supramax freight rates for petcoke from Houston, USA, March 2019-December 2023
Freight rates for the transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$27/t on average. Deals for the delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$33/t on average. Shipping costs for the delivery of a Supramax-lot of petcoke from USG to EC India are at US$60/t on average.
Market activity will be slowly recovering after holiday breaks, however, with demand in the USG showing signs of increasing for mid-late January dates, we await to see whether the momentum will pick up.
