U.S. Gulf-to-Asia for example cleared the $90/t barrier for 5,000 ton parcels from Houston to main Far East ports sometime during the week, and numbers are soon expected to breach the $100/t mark for anyone desiring November space. However, traders are just starting to retreat a little, citing that the price differentials between the U.S. and Asia do not support such freights on certain commodities. Such warnings are unlikely to bother owners, since most of them are now well covered. What may happen instead is that other sources of supply could become more attractive.

Transatlantic rates jumped too, with plenty of styrene, aromatics and ethanol quoted. Some of the numbers for 5,000 ton shots out of ports such as Lake Charles to Antwerp-Rotterdam-Amsterdam were heading into the upper $50s/t, though Houston loading tends to be lower.

Trade to the east coast of South America recorded interest in base oils, MTBE and ethanol, and with tighter tonnage supply rates nudged past the mid $60s/t level for 5,000 ton parcels from Houston to Santos. In the Caribbean, a continuous stream of clean petroleum products emerged, though chemicals activity was felt to be a little less. Rates have moved up here too, and 5,000 ton lots from Houston to the east coast of Mexico are bordering on mid $20s/t.

Europe
Coastal trades within Europe have been mostly steady, but without any earth-shattering developments. The vast majority of ships have cargoes to carry, and there are not many that are open in prompt positions. Freight rates have not done much in this region, meaning that neither owners nor charterers are in for any nasty surprises. So far, there has not been much of a move towards end-of-year shipments, whether in the Mediterranean or in the North Sea-Baltic.

Transatlantic westbound is slowly gathering more momentum. Benzene has been traded, and owners are looking for higher levels – 10,000 tons is suggested to have gone from Rotterdam to the U.S. in the very high $30s/t, and some owners are aiming for rates in the $50s/t for 5,000 ton parcels. Base oils continue to show up on this route, though not quite to the same extent as last week.

Europe-to-Asia is very short on November space, and even December is awkward. The established rate for 5,000 ton cargoes from Rotterdam to principal Far East ports is now mid $90s/t. Base oils feature less, the majority of cargoes being aromatics, phenol, acetone, EDC and glycol.

Europe-to-India-Middle East Gulf remains tight on November space, and rates are rising as a result. There is quite a bit of phosphoric acid that needs to be shipped, as well as vegetable oil, pyrolysis gasoline, aromatics and ACN. Base oils do occasionally appear, mostly into the Middle East Gulf.

Asia
Domestic Asian markets are quiet in places and busy in others. Intra-Far East has to be one of the busiest coastal routes, with plenty of mixed xylenes, toluene and benzene, as well as base oils, EDC and caustic. Numbers are holding in this trade lane. Southbound is a bit subdued, but northbound has seen quite a lot of new business, ranging from benzene to base oils, with many of the new requirements being sourced out of Thailand. Intra-Southeast Asia though is slower for both chemicals and clean petroleum products traffic, and prompt space is not hard to find.

Export business is much the same as before. There are still plenty of palm oils and biodiesel to Europe, and benzene has been spotted looking at shipping to the U.S. Gulf in December. Overall, freights are much the same as they were last week.

India and the Middle East Gulf are busier than some observers give credit. Certainly there are some prompt ships around, as well as part-cargo space available to Asia, but overall, the region continues to provide sufficient employment to the majority of vessels. Rates remain firm westbound, and space is very limited in this direction. Eastbound sees some space, but high bunker costs prohibit owners from discounting further on this route. Base oils are being quoted to Asia, with one of the requirements being as much as 15,000 tons from Iran to China, though it remains to be seen if this will get fixed.

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.