In spite of this there are some trade lanes where space is fairly tight. For example, Gulf-to-east coast of South America is seemingly active with a liberal mix of contractual volumes as well as good spot demand. Ethanol is a quirky product, and we see fixtures, quite large fixtures, for 10,000 to 15,000 ton cargoes from the U.S. Gulf to Brazil, and yet we also see similar requirements northbound from Brazil. Base oils and caustic are also moving south, and the result is that rates are fairly strong. From Houston to Santos, 5,000 ton parcels are fetching mid-$60s/t, for example.

Meanwhile, U.S. Gulf-to-Caribbean is pretty dull, and there is open space among all the main players in this region.

Transatlantic eastbound sees some demand this week, especially with ethanol, but we have also seen some styrene get done. Levels are working out in the low-to-mid $50s/t for 5,000 ton parcels from Houston to Rotterdam.

U.S. Gulf-to-Far East is dull for July, but there are some glimmers that August will see more interest in aromatics, notably mixed xylenes. Phenol, acetone, MTBE and even biodiesel have all been heard enquiring to Asia. Attractive numbers can be secured for July, typically $60 to $65/t for 5,000 ton lots to principal ports, with owners holding back a bit longer for August lifting until all the contractual volumes have been entered.

Europe
The market in the North Sea and Baltic is healthy with good levels of contractual nominations keeping space balanced and spot rates steady. Southbound into the Mediterranean has been positive too, with regular volumes of styrene, benzene, paraxylene and FAME. Northbound however has not been so bright with the common perception being that trade has diminished over the past week.

Inter-Mediterranean is tight on space for the next 10 days or so, but here too the feeling is that summer is about to kick in with the usual plant stoppages and holidays.

Transatlantic westbound is calm. Easy chemicals, pyrolysis gasoline and naphtha have been quoted around, and there has also been interest in caustic from the United Kingdom and Antwerp-Rotterdam-Amsterdam into the U.S. Charterers freight ideas are very low however – 5,000 tons of caustic from Rotterdam to the U.S. Atlantic Coast is seeking tonnage in the mid $30s/t, for instance, which owners find too low for now.

Europe-to-Far East has been mostly quiet, although some paraxylene was noted, as well as some ethylene dichloride, butanols and even styrene. Several ships have space from Rotterdam, but Mediterranean loading is proving hard for smaller quantities, as the bigger ships do not like deviating into outports. From Rotterdam to main Far East ports, 5,000 ton cargoes are pitched in the mid $70s/t, but a small lot from the Mediterranean can easily attract numbers between $120 and $160/t.

Europe to India and to the Middle East Gulf has been slow. Pyrolysis gasoline has been seen heading into the Middle East Gulf, with 15,000 tons heard fixed in the $60s/t loading from several ports in the Black Sea. Possible problems at a phosphoric acid plant in North Africa may however herald more open space on the route since phos acid is a major staple diet for many ships heading in that direction.

Asia
A tight tonnage situation is developing in Northeast Asia with numerous paraxylene requirements being quoted into Taiwan and China. Rates are marching upwards in this area. However, styrene and glycols have been disappointing, primarily because of supply issues or product pricing.

Some parts of Southeast Asia are proving to be a bit tight on space too as owners hold back in anticipation of contractual nominations, whereas other parts see ample space, such as for business from Southeast Asia northbound.

The export situation continues to see plenty of specialist acid requirements such as acetic acid and thermal phos acid to Europe. There are also plenty of sulphuric acid shipments to India, U.S. and South America. Aromatics shipments however are dwindling, with some 20,000 tons of benzene heading to the U.S. in July instead of the 30,000 tons that was moved in June.

Palm oil rates to Europe remain exceptionally strong, with some deals done in the $80s and $90s/t for 15,000 to 18,000 ton cargoes to Europe. Increased biodiesel activity is also having an impact on this route.

Perhaps where trade seems to have quietened is in the Middle East Gulf-India region. Certainly this is an often repeated line, although at any one time there are plenty of requirements quoted out on the marketplace, both east and westbound. Not all of it is converted into actual shipments however. The impression is that rates are roughly in the $70s and $80s/t to the Mediterranean and Northwest Europe for 5,000 ton lots, and some $10 to $15/t less for shipment into the Far East.

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 Jordi Maymi can be reached at fix@ssychems.com or +44 20 7977 7560.