Contractual demand for December was not that fantastic either, and bits and pieces of scheduled space kept popping open. Rates bounced around quite a bit, of course, but things have stabilised now that the scheduled carriers have filled. There are still cargoes being quoted for aromatics, as well as some ethanol and styrene, but the urgency seems to have passed. Numbers are sticking around mid $70s/t for 5,000 ton parcels from Houston to scheduled principal ports in the Far East.

Eastbound transatlantic has been poor for the past couple of weeks. Ethanol is beginning to come back for end of December and January shipment, but there is not a great deal else out there. Rates are in the mid $40s/t for 5,000 ton cargoes from Houston to Rotterdam.

The U.S. Gulf to East Coast South America has also been moribund, although spot rates are clinging on to $60/t for 5,000 ton parcels from Houston to Santos.

The U.S. Gulf to Carribeans route is tight on space, which suggests the plethora of outsiders has almost completely dissipated. Rates have not changed much however.

Europe
There has been a surge in the amount of business quoted to the Far East over the past two weeks, but as with the United States, the last couple of days have seen most of the cargoes fail subjects. Scheduled tonnage has now filled entirely, and what seems to be happening is that smaller ships are being promoted to lift the requirements, except they need freights that are well above those that were fixed early in the month. So instead of mid $80s/t for 5,000 ton cargoes from Rotterdam to scheduled principal ports of the Far East, owners are talking levels of $125 to135/t and such levels seem to be too high to permit the trades to go through, hence why the subjects keep failing.

So far, most of the enquiries have been centred on paraxylene, mixed xylene, orthioxylene, glycols and styrene. There were a couple of base oil enquiries, too, but since Asian base oil prices have fallen it is unlikely that these cargoes will get fixed.

Europe to India and the Middle East Gulf is stable. There has been some interest in aromatics, plus styrene, but the main cargoes are still phosphoric acid and vegetable oil. Base oils are quiet in this direction.

Transatlantic is having a reasonable spell, with parcels of paraxylene, benzene, pyrolysis gasoline, toluene and mixed xylene, as well as larger lots of sulphuric acid and urea ammonia nitrate that have been fixed. Rates have moved up into the low-mid $40s/t for 5,000 t cargoes from Rotterdam to Houston. Some base oils were discussed into Mexico, and there has been some interest to ship a cargo into Houston too.

There has been no great fanfare or fuss about year-end shipments in the Domestic European markets. In the North Sea and Baltic most ships are booked into the holiday period, but still need a final surge of cargoes to enable them to fix into the new year. There are probably sufficient bits and pieces around that most ships should make it. However, it is more tense in the Mediterranean. Ships are generally fixed 5 to 7 days in front, but owners are more nervous and this nervousness is driving down rates, especially on larger cargoes. There are in fact quite some cargoes in the market, but the desire to get fixed is overpowering and some reasonable bargains have been seen.

Northbound is affected to some extent, and owners are keen to fix out of the Mediterranean. Southbound into the Mediterranean, however, is fairly active and rates are firm.

Asia
Demand has been very strong on the Domestic Asia markets, to the extent that cargoes are often repeatedly quoted, week in and week out without actually getting covered. Some charterers have had to dispense with the notion of loading in December and are now seeking January ships instead.

Intra-Far East is full of the usual aromatics, styrene and glycols. There are some base oils to be shipped, too. Bad weather in the region has not helped, and port delays can easily be up to five days.

Southbound is busy, and owners have had no difficulty in finding cargoes, including base oils, caustic, styrene and aromatics.

Northbound has been very active and there are numerous cargoes to be shipped, including acrylonitrile, MTBE, pyrolysis gasoline, paraxylene, styrene and benzene. Rates are firm all around the region.

Asia Export is really only one main product these days, and that is palm oil. Demand is incredibly vigorous, especially for December loading. Rates to India have shot up even higher and many shipments are being done in the $50s/t, but there was also a report of 11,000 to 12,000 tons being fixed from Kunak to the East Coast of India in the low $60s/t, a far cry from the rates in the high $30s/t that were being done late summer.

China, too, has been taking large volumes, stocking up before last-cargo regulations change next year. Deep-sea palm oil markets are robust as well. In addition, there are biodiesel cargoes to Europe for those owners whose ships do not have the requisite last-cargo history. In terms of chemicals, there are quite a few small specialised parcels to Europe, as well as sulfuric acid shipments to the Americas, the rates for which have also increased.

Space is tight for December out of the Middle East Gulf-India region.

Eastbound demand is buoyant and rates have risen. Five thousand ton parcels for the Middle East Gulf to scheduled principal ports of the Far East are almost into the mid $60s/t, if December shipment is needed.

Westbound space is confined to just the regular players because owners see little advantage in sending ships in this direction otherwise.

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.