It can perhaps be measured by counting the number of ships that are fully open in the U.S. Gulf this week compared to last week. What has become apparent is that owners can and will consider cargoes that they might otherwise have ignored, whether they be just a part-cargo or another route that would not normally have interested them. As a result, the space situation is not as urgent as it was. Not that freights have altered generally.

Only U.S. Gulf to east coast South America has seen some strength for prompt loading, with 5,000 tons of chemicals from the U.S. Gulf to northern Brazil fixed at close to $60 per ton for example, well above the usual high $40s/t. All other routes see unchanged numbers from last week. Eastbound transatlantic sees renewed interest in styrene and benzene/toluene/xylene, which has been booked in the low-mid $40s/t for 5,000 ton lots, although some owners are now pushing for levels in the mid $50s/t.

There is less open space from the U.S. Gulf to the Far East due to heavier contract nominations, but the handful of ships that do have space are still willing to accept levels of high $40s/t for 5,000 ton cargoes. Currently, 5,000 ton cargoes from the U.S. Gulf to west coast India are running in the high $80s/t currently.

Europe
Europe is rapidly turning into a bottleneck where ships end up but few find outbound cargoes. Europe to the Far East is noticeably quiet with scheduled June ships still holding space.

Most cargoes are of 3,000 tons or less in size, which does not work for the outsiders who would like to come on berth. And if those cargoes are not loading from Antwerp-Rotterdam-Amsterdam or discharging at Mainport Far East, then owners with scheduled space are not keen to offer.

There has been a bit more cargo flow transatlantic, with pyrolysis gasoline and caustic being done, and more base oils expected in light of all the plant issues in the U.S. Gulf, but rates are being maintained for now. Europe to India remains unchanged, with 3,000 ton parcels from Rotterdam to Mumbai fetching low-mid $80s/t. But a juicy fat cargo of, say, 10,000 tons from Rotterdam to Mumbai could tempt some owners with levels perhaps down to $60/t, or maybe even less, but it is speculative since there have been few such cargoes for a while.

Asia
The firming effect on rates of fewer vessels being fixed into the region from outside continues to take place this week. Furthermore, Asian aromatics prices have tumbled yet again on weaker crude oil prices, making benzene especially attractive to buyers in Europe and the U.S.

It is possible to see 15,000 to 20,000 ton cargoes of benzene moving from Korea. Rates to Europe have been lifted to mid $60s/t for such quantities and around $50/t for U.S. Gulf discharge. Smaller parcels tend to go for some $5 to 10/t more as completion cargo.

Rates on edible oils too are under pressure, although traders are striving to negotiate for better terms. For first half June loading, it is possible to see $25/t and even $27/t being fixed for 10,000 ton cargoes of palm oil from the Malacca Straits to west coast India, well up from the traditional $20 to $21/t normally fixed.

India and the Middle East Gulf are perhaps among the busiest of all regions globally. That said, there are still a couple of prompt ships open in the region, which is hard to reconcile given the large numbers of cargoes quoted from the region. In addition, 3,000 tons of base oils from Iran to the eastern Mediterranean can be expected to fetch a bit less this week because several ships are not entirely full and can accommodate more cargo. Freight for such a trip would work out at around $75 to $80/t.

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 directly at research@ssy.co.uk or by phone at +44 1207-507507. In the U.S., SSYs Steve Rosenthal can be reached at fix@ssychems.com or +1 203-961-1566.