The USG Supramax/Ultramax freight markets were active throughout the month due to a lively demand, especially on transatlantic routes. The tonnage list was getting tighter as coal and grain cargoes were hitting the market. Overall, the market fundamentals felt stronger with plenty of cargoes surfacing and rates moving up on all routes.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$25.50/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$50/t on average.
Supramax freight rates for petcoke from Houston, USA, March 2019-October 2023
Supramax/Ultramax owners are optimistic as the cargo book for October looks healthy, given that a noticeable increase in grain offer for shipments from the US and a further upturn in coal traffic are expected. However, weather may bring some adjustments. The low water level in the Mississippi River is playing a decisive role as it might delay grain shipments forecast for October, which will affect the general market sentiment and freight rates for shipments from USG ports.
With a focus on containers, the potential US port strikes should not impact bulk carriers.
By Brannvoll ApS, Denmark
