Supramax freight rates held at high levels, as demand/supply ratio balanced itself

By Brannvoll ApS, Denmark

The USG Supramax spot freight market remained firm as demand stayed healthy, especially for transatlantic trips.

Closer to the end of the month, rates stabilised as the region appeared quite balanced. Despite the demand/supply equilibrium, the sentiment turned somehow uncertain, but rates maintained the achieved levels.

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

Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$25/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$30/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$52/t on average.

The freight rate decline looks quite probable in the North Atlantic. Gradual increase in a tonnage list in the region may put pressure on freight rates, while positive developments require a more significant upturn in offer of petcoke and grains on all routes.