The USG Supramax/Ultramax freight market started the month on a positive mode as more petcoke, coal and grain cargoes were offered for shipments to Far East, southeast Asia, India. Closer to the end of the month, the market started weakening as an amount of fresh cargoes were lacking in abundance despite the optimistic expectations of the shipowners.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$22/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$47/t on average.
Looking forward, transatlantic rates are likely to sag in the USG area following the front-haul levels as there is an increasing interest in staying within the Atlantic from the owners’ side. The overall sentiment is bearish amid a consistent lack of cargoes in the Atlantic basin, even though the grain season in the US should be gaining momentum.
By Brannvoll ApS, Denmark
