The USG Supramax spot freight market sentiment was quite pessimistic throughout the month and rates were falling on the back of limited fresh cargoes and a long list of available vessels. Additional pressure was caused by dampened activity due to Chinese New Year celebrations and the absence of the main market players.
Brokers reported a slightly increased number of fresh enquiries, mainly from United States East Coast (USEC) and North Coast of South America (NCSA) but without a positive effect on rates. USG cargo flow remained subdued on transatlantic and fronthaul routes throughout the first month of the year.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$17/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US $20/t on average.
Average shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$35/t.
The USG market will most probably remain subdued in the near future due to all the uncertainties around the new tariff strategy of the USA and the response by the countries that have been subject to tariffs. Overall, the outlook is pretty pessimistic for now.
By Brannvoll ApS, Denmark
