Spot volumes remain low on the U.S. Gulf-to-Far East routes. Usual cargoes of styrene and aromatics are elusive, and in some cases, U.S. prices are higher than those in Asia. Instead, there are some minor volumes of base oil, acrylonitrile, phenol, solvents and ethanol. There are ships that still have March space to fill, and rates continue to drop. Numbers are now in the mid $70s per metric ton for 5,000 ton parcels, but owners could be tempted to put a number in the $60s/t against a firm piece of business.

U.S. Gulf to India-Middle East Gulf is rather quiet.

Transatlantic eastbound is not that busy with spot cargoes, but owners are filling out scheduled space on contracts which then allows them to take a firmer stance than would otherwise be possible. Rates remain around $50/t for a 5,000 ton parcel of easy chemicals, but weve seen wax, for example, that is attracting levels closer to $100/t for 3,000 tons.

The U.S. Gulf-to-Mediterranean route remains quite strong, too.

The market from U.S. Gulf to the east coast of South America is looking a bit tight on scheduled space for prompt lifting. A combined cargo of 17,000 tons of aromatics and base oils from U.S. Gulf to Brazil and Argentina was being negotiated in the mid-high $70s/t, for example.

U.S. Gulf to Caribbean is gradually clearing out the backlog of ships and cargoes after the fog lifted. So far, there has not been a great deal of new business being conducted. Some small base oil parcels were said to be looking to ship to Dominican Republic and there has been interest in shipping some base oils to Mexico. Rates are flat so far.

Europe

It has been another busy week in the North Sea and Baltic with a substantial number of spot requirements noted. Prompt space is rarely found and rates are strong.

Southbound into the Mediterranean is also firm, with a couple of base oil cargoes quoted for over a week without finding the right kinds of ships.

Northbound is also fairly strong and there are not so many opportunities to fix at low numbers.

Inter-Mediterranean business has been strong for a while already and shows little sign of relenting. So far, there has not been any real interruption to business out of the Black Sea, at least from ports in western Ukraine. There is not much news so far with regards to Theodosia, which is in Crimea, however. There has clearly been intention to ship from the port, with base oil enquiries spotted into Turkey, but nothing is reported done so far.

Transatlantic westbound has neither been very busy nor has had a massive amount of space around and owners are able to find the occasional parcel of paraxylene, sulphuric acid, calcium nitrate or even base oil with which to fill out. Rates are therefore unchanged.

Europe to Far East remains in the grip of just a couple of owners who can offer space, but charterers have to be prepared to dig deep in order to secure some of that space. Aromatics in the amount of 5,000 tons were heard fixed from Rotterdam to Mainport Far East for around $110/t -155/t, for example, and parcels of 2,000 – 3,000 tons will attract offers of $140/t or so. The amount of new business quoted has understandably diminished, with charterers feeling that the freight levels are higher than their trades can absorb. Base oils continue to be seen, but mostly in smaller lots from the Mediterranean, in the hope of picking off a passing ship that has been unsuccessful in filling out at the higher levels from Northwest Europe.

Europe to India-Middle East Gulf remains tight on space as well, and owners are being selective as to which combination cargoes they will carry. Base oils are present among the other chemicals and vegetable oils quoted, but none has been reportedly fixed.

Asia

The domestic Asia market is still far from consistent, having faded several times in the past week, just as it looked to be getting going again. Aromatics into China, or the lack of, are the main culprits. Indeed, there appears to have been more aromatics shipped from Southeast Asia than from the usual Korean ports. Consequently, there is quite a large number of ships still open with March space, whether for part-cargoes or even for full lots. Furthermore, a growing number of new cargo enquiries are stretching forward into the last days of March or even into April, and it remains to be seen, therefore, whether freight rates might even dip before the month is out.

Asia export markets, however, have been very strong and not just with benzene to the U.S., but also with methanol to both the U.S. and Europe. Rates for the large slugs of benzene have been in the high $50s and low $60s/t, whilst the methanol cargoes from ports in China and Malaysia have been in the upper $80s and low $90s/t. Some base oil activity has been detected towards Europe with some interest seen into India and the Middle East Gulf.

Parcels of some 2,000 tons from Korea into the Middle East Gulf are currently fetching in the $70s/t.

Palm oil had another static week, which means there should be interest from owners in larger volumes of base oil within Asia or into India and the Middle East Gulf. Indeed, the India-MEG region is performing reasonably well, fuelled by a resurgence in Iranian material. There is some reluctance from certain ship owners to call Iran due to issues with protection and indemnity coverage but we have seen more owners attracted to this trade.

Adrian Brown is senior market analyst for chemicals and base oils with SSY Shipbrokers, London. Information about SSY can be found at www.ssyonline.com.

Adrian Brown, in the U.K., can be reached at fix@ssychems.com or by phone at +44 1207-507507. In the London office SSYs Panos Giannoulis can be reached at fix@ssychems.com or +44 20 7977 7538 and in Singapore Jordi Maymi at +65 6854 7127.