The shipping market continues its depressed theme, although a bit more demand has been reported in certain areas. The last two or three weeks (even months in certain trade lanes) have been extremely slow, so a few cargo inquiries have renewed owners hopes that the trend may be changing.
However, this seems highly unlikely, since we are approaching the usual slower summer period and the Muslim religious celebrations. Bunker prices may move up again, following crude oil prices, after having dropped over $100 per metric ton across the globe in the last two months.
U.S. Gulf of Mexico
The U.S. Gulf to Caribbean route shows some symptoms of recovery. The number of open ships has been reduced with a bit more clean petroleum, methanol and ethanol business fixed.
The U.S. Gulf to East Coast of South America continues with the same trend. There is tight space for July within the regular carriers so some charterers seeking part space had withdrawn from the market. However, an owner has just put a vessel on berth for July 5 to 10, with part space available, which will surely get much attention.
Transatlantic eastbound is very slow, with very little trading business being quoted. One outsider managed to fix 10,000 tons of styrene to main port North West Europe in two parcels, while other owners are struggling to find the right cargoes back to Europe. Houston to main port North West Europe, 5,000/t would fetch high $40s/t, with some dollars on top basis loading from other ports such as Lake Charles or within the Mississippi river. Acetic acid has been tried into the Mediterranean, but no suitable ships have appeared so far.
The U.S Gulf to Far East seems to have picked up just a bit after two dead months, with 5,000 tons of styrene fixed. Rumors that more styrene is moving are so far unconfirmed.
Europe
More spot activity has been reported in the North Sea,while the Baltic region seems quieter. Contract of affreightment nominations are advised as stable. Cargoes of base oils have been seen across Northwest Europe and Baltic to Northwest Europe.
Northwest Europe to Mediterranean has seen more inquiries, mainly FAME/ETBE to Western Mediterranean in preparation for the summer driving season, but also base oil continues flowing into Turkey. It seems that not many cargoes firmed up due to regional economic uncertainty.
Northbound from the Mediterranean shows plenty of space available. Cargoes from the Western Mediterranean and Portugal to Northwest Europe, such as aromatics and clean petroleum, have been active while Eastern Mediterranean is softer as we may be approaching the end of the vegetable oil season ex Black Sea.
Inter-Mediterranean remains slow and many owners have or will soon have spot ships seeking cargoes.
Transatlantic westbound rates continue in the region of low $40s/t basis 5,000t parcels from Rotterdam to Houston. Cargoes of aromatics/pyrolysis gasoline from Holland/Belgium or Western Mediterranean have been busy but not much firmed up. A 10,000 ton shipment was reportedly fixed from Terneuzen to the U.S. Gulf at mid $30/t. Other cargoes include urea and ammonium nitrate from the Baltic, FAME from Germany and caustic from Rotterdam. Base oil cargoes were quoted into Brazil and West Africa.
Europe to Far East sentiment is still slow, although more inquiries have hit the market such as oxo-alcohols and acrylonitrile from the Baltic, and other small specialized chemicals from Rotterdam or Antwerp. Aromatics and glycols have been fixed or are on subs, so owners expect trading business may come back soon, with 5,000 ton volumes probably fetching around $80/t basis Rotterdam to main ports of the Far East.
Europe to India-Middle East Gulf has seen another quiet week. Only big lots of phosphoric acid and vegetable oil seem to materialize while small parcels of chemicals are fixed with ships en route. Rates tend to be unchanged, which effectively means in the low-mid $70s/t for 5,000 ton cargoes from Rotterdam to the West Coast India.
Asia
Domestic Asian continues to be driven by contract of affreightment nominations with no apparent arbitrage open for any typical trading cargoes.
Northbound from Singapore is still showing part space available for early July loading, although paraxylene has been quoted from Southeast Asia to China. Chemical cargoes of 5,000 tons have reportedly been fixed from Kerteh to China at low $40 to $50/t depending on discharge options.
Southbound is busier, with no prompt space available and owners marketing ships for mid-July dates.
Export Asian is overall soft with space available in all directions.
Middle East Gulf-India is slow, with part space available out of the region, and a long list of ships fully open on July 1. In addition to the persistent lack of demand for chemicals from Southeast Asia and China, the upcoming religious holidays starting July 20 in the Muslim countries are contributing to the lack of cargoes in this direction.
Iranian business is still commanding a premium, and word is that a 12,000 ton chemical lot to China was fixed at $105/t.
Adrian Brown is away.
Jordi Maymi is a shipbroker for chemicals and base oils with SSY Shipbrokers, London. Information about SSY can be found at www.ssyonline.com. Jordi Maymi can be reached in the London office at fix@ssychems.com or +44 20 7977 7560.