The Gulf to the Caribbean is unexciting, and there are more ships coming into the region later in September. There will have to be a jump in demand if all these vessels are to find work.

The Gulf to the East Coast of South America has been another silent route. Most of the very prompt ships have either sailed or been filled, although not all as there is still some prompt space to be found. However, owners are less inclined to accept rates in the high $40s to low $50s/t for 5,000 ton parcels from the Gulf to northern Brazil. Instead, they are looking to prise rates back up to where they were before, namely low $70s/t.

Transatlantic eastbound saw rates drop away as expected following the hurricane, leaving a number of cancelled cargoes. Late in the week, however, a surge in benzene and ethanol demand resulted in much of that space being booked away, albeit at rates more akin to $45 to 47/t for 5,000 ton parcels from Houston to Rotterdam. Some prompt space remains and it may be possible to even squeeze a bit out of those levels.

The Gulf to the Far East experienced hardly any new activity, although contractual demand seems to have picked up and owners are beginning to sound more bullish on their rate ideas for October shipments.

Europe
There has been a significant increase in the volume of cargoes quoted over the past week in the Baltic-North Sea area. We ourselves have seen at least 40 to 50 parcels in the 1,000 to 5,000 ton range, excluding clean petroleum, and there are probably many more. Furthermore, the majority of these cargoes are for prompt-mid September loading, which will probably reduce the amount of prompt space that has built up in the area recently.

Southbound into the Mediterranean has been strong, with many varied cargoes going both into the East Mediterranean as well as to the West Mediterranean. Base oils have been seen among them. Rates remain firm.

Northbound also had a fairly busy week, at least by northbound standards. Rates are unchanged though.

Intra-Mediterranean business picked up a little. There have even been more cargoes quoted out of the East Mediterranean, including base oils, while the West Mediterranean remains busy and vessels are generally well employed.

Transatlantic westbound is calm with hardly any interest in base oils noted this week. Urea ammonia nitrate, naphtha, alkanes, tertiary butly alcohol and a solitary cargo of pyrolysis gasoline were the main offerings on this weeks menu. Rates are largely unchanged for now.

Europe to the Far East has been less active, and rates have dropped down into the mid $80s/t for 5,000 ton parcels from Rotterdam to schedule principal ports in the Far East. September space has virtually gone, but so has demand. There are some bits and pieces being shown around, including some possible base oil cargoes, but the contractual uptake is perhaps less, which is why owners are more conciliatory on their rates.

Europe to India and the Middle East Gulf region has been busy again, primarily with phosphoric acid. Some base oil business has been worked out of the Black Sea, but as Indian base oil prices are falling, this deal may be in jeopardy. Moreover, the vegetable oil season from the Black Sea is over and there is nothing much left to be shipped to India or the Middle East Gulf area.

Asia
Others are now starting to report what we have been saying for several weeks now, and that is that the Domestic Asian market is quite a bit busier. Aromatics into China and Taiwan lead the way, but there are improved volumes of other commodities, including base oils.

Space has become quite tight on a number of routes, including the southbound leg. Aromatics and styrene are prevalent, and we expect cargoes from Ulsan to be the ones that are more easily fixed, while those from Daesan, Yosu and Inchon will be left untouched for now.

Northbound also has picked up, with more business quoted for September. Cargoes include benzene/toluene/xylene, MTBE and paraxylene. Space is tight for prompt lifting.

It is also tight on the intra-Southeast Asia trades, although there are still some ships able to make very end September loading back to Singapore.

Asian Export business is steady, with the usual run of palm oils, sulfuric acid, biodiesel and numerous smaller parcels of acids and solvents. There has been interest again in MTBE from Asia to the Americas, and an unusual cargo of biodiesel from Australia to the U.S. Gulf of Mexico. Base oils have been quiet, however, in spite of falling prices, but is consistent with talk of cutbacks in refinery runs.

More competitive numbers have been talked westbound from the Middle East Gulf to India region from a couple of ships that wish to relocate back to Europe. However, there are charterers with cargoes in this direction who report being unable to locate suitable September space, which suggests that owners are attempting to cluster loading/discharge options rather than offer on absolutely everything.

Eastbound looks steady although there remains open space still within September and into early October.

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.