Supramax rates fell significantly on all routes amid slow start to the year

By Brannvoll ApS, Denmark

The year started on a negative note for Supramax owners in USG. Rates were rapidly falling amid a lack of cargoes and a growing tonnage supply. Closer to the end of the month, the negative trend took a hold and freight rates stabilised thanks to more grains and petcoke offers on fronthaul routes.

Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$21/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$26/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$50/t on average.

upramax freight rates for petcoke from Houston, USA, March 2019-February 2024

An influx of fresh demand is required for the market to change direction. Otherwise, it seems like little change is expected in the market fundamentals with rates maintaining their levels. We await to see how the market unfolds in the near future.