It has been another week without much excitement in the U.S. markets.

Transatlantic eastbound has been the only route that has constantly produced a regular flow of business, even if it is just styrene and little else. Rates on this route are pretty stable, however, being in the upper $40s per metric ton for 5,000-ton parcels.

U.S. Gulf-to-Caribbean is somewhat dull, with nothing substantial coming to light. Rates have perked up a bit into Mexico, however, and owners are chasing for rates in the $24-25/t region for 5,000-ton parcels from Houston.

On the other hand, rates have slipped into Brazil, with just too much tonnage already on berth and not much by way of spot demand to soak it all up. Things are a bit tighter back out of Brazil, thanks to improved ethanol and vegetable oil exports. There has also been interest in base oil shipments with 12,000 tons being shipped to the U.S. Gulf and some further requirements quoted to India.

U.S. Gulf-to-Far East has been rather disappointing. Ethanol continues to be the principal commodity, but has been joined by cumene, ethylene dichloride and acrylonitrile to make things a little more interesting. Freight rates are dropping, with owners reconsidering to accept rates in the $50s/t for even relatively small sizes. There is still no real sign of any base oil activity, which is surprising, considering that now is the main time to offload surplus material.

Europe

There has been a bit more contractual work for owners trading in the North Sea and Baltic, and the spot market has picked up fractionally. The amount of prompt open space has reduced and it even took several days for a major oil company to fix its cargo of base oils into the Baltic. All the same, the market is still a long way off from where it usually is at this time of year.

Southbound into the Mediterranean has been more positive, with a wider range of commodities and in greater quantity, too. Base oils have been represented, partly trader business and partly oil company transfers. Rates are stable and the reason would seem to be that there are still some ships with completion space. Freights into Turkey for 2,000-ton parcels are around $58-60/t.

Northbound has been slow, with nothing startling.

Inter-Mediterranean trades have been busier, especially in the East Mediterranean where clean petroleum and vegetable oils have soaked up much of the space-and not at low levels. Base oils have been apparent in the Mediterranean and Black Sea.

Transatlantic westbound has been reasonably active again. There is not so much scheduled space remaining for November, but despite that, rates have not really changed. The latest fixtures of pyrolysis gasoline are similar to previous bookings, with the exception of the Mediterranean, where owners have been adding an extra $10/t to the last-done levels. Some base oils have been quoted to the U.S. Gulf in the midst of the aromatics cargoes, but nothing appears to have been fixed so far, and traders have been looking at covering the base oils into Venezuela too.

Europe-to-Far East has not been particularly busy on the spot market, but space has tightened through increased contractual nominations to the extent that December space has almost gone. Base oils have been active on this route with several fixtures noted, the latest cargo of 7,000 tons from the Mediterranean to India and Singapore fetching around $90/t.

Asia

Not many ships are left with November space in the domestic Asia market. The busiest route appears to be between Korea and China and Korea to Taiwan where aromatics are flowing, but there are also quite some base oils being recorded within the region. Freights are typically stable or firm throughout the area.

Rates on base oils from Northeast Asia to India are in the upper $60s and low $70s/t for 2,000-3,000-ton parcels.

Some base oils were heard moving to Europe on the Asia export market, and at really competitive numbers (below $100/t). Further investigation revealed that the ship was sailing the very same day, which is a good example of what can be achieved by picking off last-minute space since fixing a sister vessel one month ahead would cost at least $20/t more.

The India-Middle East Gulf region has been slightly slower on the eastbound leg to Asia, at least with larger lots, although there are quite a few small parcels quoted. Westbound space is scarce, however, and $100/t was paid to ship 9,000 tons of benzene from the west coast of India to the U.S. Gulf. Interestingly, another vessel accepted $90/t for 6,000 tons to the U.S. Gulf, but from a different Indian port.

Adrian Brown is senior market analyst for chemicals and base oils with SSY Shipbrokers, London. Information about SSY can be found atwww.ssyonline.com. Adrian Brown, in the U.K., can be reached atfix@ssychems.comor by phone at +44 1207-507507. In the London office SSYs Panos Giannoulis can be reached atfix@ssychems.comor +44 20 7977 7538 and in Singapore Jordi Maymi at +65 6854 7127.