There is not a great deal of prompt space left on the routes into Asia, apart from some epoxy-coated tanks that are suitable for base oils but not well-suited for the types of chemical cargoes that are being quoted currently – ethylene dichloride, phenol, ethanol and styrene. Moreover, the pool of available outsiders is not particularly large. Freight levels for 5,000-ton parcels to China are close to $60 per metric ton, but traders are unwilling to pay higher levels to attract that tonnage on berth, so some of these enquiries are likely to fade away.

Styrene hit the headlines this week along the transatlantic route after the force majeure declaration from a major European styrene producer sent traders into a frenzy to try to locate any spare material to send to Europe. Since space has not been particularly plentiful anyway, this has resulted in owners seeking levels of $50/t and upwards for 5,000-ton cargoes from Houston to Rotterdam. On top of all this are the regular shipments of vinyl acetate monomer, cyclohexane, lysine and ethanol that still have to be covered. Furthermore, traders see good opportunities to sell material into the Mediterranean, such as styrene, ethylene dichloride and acrylonitrile, and this too could attract some of the ships that would otherwise have been available for cargoes to Continental Europe.

It has been rather slow in the Caribbean markets these days. Caustic is, as usual, the primary grade, with around 15,000 tons to 18,000 tons fixed into Jamaica, another 12,000 tons going to the east coast of Canada, and some small parcels going to places like Rio Haina, Dominican Republic. Base oils in the amount of 1,000 tons were quoted from Houston to Rio Haina. A tender for 6,300 cubic meters of ethanol into Jamaica still has to be covered.

Ethanol seems to have been quieter into Brazil these days. Caustic is again topical, with an enquiry for 6,000 tons into North Brazil and a tender for another lot into Munguba, Brazil. It is unclear yet as to whether the 2,800 tons of base oils into Santos, Brazil, were booked.

Base oils are still on the back-burner for now into India and the Middle East Gulf, but products such as ethylene dichloride, ethanol, acrylonitrile and oxo-alcohols have been noted.

Europe

In comparison to the market at the end of July, there has been a slight improvement in terms of cargo volume, but the market in the North Sea and Baltic is saddled with a lot of extra tonnage that is finding it difficult to find cargoes to take the ships out of the area. There are Mediterranean vessels, transatlantic ships and ships that ought to be serving the route into the East that are clogging up the market in the North Sea, and even offering on small part-cargoes. Rates are, therefore, under a great deal of pressure. Base oils have not been particularly lively, though the 6,000 tons requirement from Kaliningrad, Russia, to Rotterdam was covered.

The southbound route has faced some severe competition from owners, with some acknowledging that low $30s/t could have been possible on 5,000-ton parcels from Rotterdam to Turkey. A couple of owners have even admitted they are contemplating ballasting their ships empty back into the Mediterranean. As always with these things, the most competitive rates can be secured on cargoes that fit owners schedules nicely. Ones that are overly-complicated or have complex vetting issues tend to go for much higher levels, such as the 2,600 tons of pyrolysis gasoline from Dunkirk, France, to Porto Marghera, Italy, that went for $70/t.

The northbound route is often felt to be the backhaul route for ships heading back to Continental Europe, but these days there is a steady flow of material, and it probably overshadows the southbound route in terms of activity. The pyrolysis gasoline from Rijeka, Croatia, finally got fixed, but looks to have entailed pulling in a few favours. Pyrolysis gasoline in the amount of 6,000 tons was fixed from Priolo, Italy, to Antwerp-Rotterdam-Amsterdam in the low 40s/t. Numerous other benzene, pyrolysis gasoline and toluene requirements were noted. On the base oils front, 6,000 tons were loaded in Kavkaz, Russia, for Dordrecht, Netherlands, and Hull, England.

The beginning of August traditionally heralds the start of the holiday season in the Mediterranean, and cargo volumes are expected to decline from now onwards. Some charterers went on the market with their shopping lists in advance so as to be able to take things easier while offices are short-staffed. A few more prompt ships have been seen in the area, and rates are likely to slide as a result. Base oils have been rather calm this week.

Demand has been rather thin this week. Pyrolysis gasoline is still mentioned, but is mostly on hold for now. Paraxylene in the amount of 5,000 tons was fixed from Rotterdam to the U.S. Atlantic Coast for around $28/t, and 10,000 tons of paraxylene was quoted from Aliaga, Turkey, to the U.S. Atlantic Coast. Base oils in the amount of 3,000 tons were booked from Riga, Latvia, to the U.S. Gulf, and a further 3,500 tons of base oils appear to be loading in Livorno, Italy, for Cuba.

For another week there have only been small parcels quoted to Asia, leaving two outsiders with completion space still to fill. One of these ships will be in the Baltic mid-month with quite a lot of epoxy space in case base oils can be worked into China.

There is a wide range of commodities looking for space in August into India and the Middle East Gulf, and there is quite a long list of ships looking for cargoes with which to fill out. Several base oil cargoes have been seen, including a couple of relet possibilities, into the Middle East Gulf, as well as a cargo from the Mediterranean into Pakistan. Base oils in the amount of 2,350 tons were fixed from a restricted berth on Continental Europe to Fujairah, United Arab Emirates, in the $120s/t.

Asia

The upbeat mood has continued a little longer as most ships throughout the domestic Asia route are fixed up to the middle of the month, with several more only available at the end of August, and a fortunate few showing September positions. Intra-Far East is pretty busy, and with typhoons affecting ports and vessels schedules, delays are beginning to build, tightening the amount of tonnage available, and possibly leading to firmer freights. Base oils have been a bit busier within the domestic Asia region as well, with a number of cargoes destined for China in particular, but also moving from North Asia southbound. Northbound is primarily aromatics territory, with many possible shipments of pyrolysis gasoline, benzene, toluene, styrene, mixed aromatics, mixed xylenes and paraxylene, as well as glycols.

Traders have lost interest with benzene to the U.S., although there are some large paraxylene requirements instead. A number of small commodity parcels have been fixed, with 2,000 tons of acetone fixed from Yosu, Korea, to Houston in the mid $70s/t. Base oils in the amount of 1,000 tons were asking for rate guidance from Mailiao, Taiwan, to Houston, but will be priced at close to $100/t, which might constrain the business. The market to Europe has been strong enough to allow an extra outsider on berth, with yet another cargo of 3,000 tons of base oils being booked from Korea to Le Havre, France. Rates are trending in the $100/t to $130/t region for small parcels back to Turkey, although 4,000 tons of acrylonitrile from Ulsan, Korea to Yalova, Turkey is reckoned to have gone in the $130s/t. The palm oil market to Europe and the Americas has strengthened, as have the local markets into India and China, providing a better platform for owners to consider smaller completion cargoes.

It has been a quieter period within India and the Middle East Gulf, and prompt space can be found. A few more Iranian base oil enquiries have been seen, and it seems there are still possible cargoes to India from Al Ruwais, U.A.E. Eastbound has been calm. Westbound space remains tight, which might see slightly firmer levels become established.

Adrian Brown is a senior market analyst for chemicals and base oils with SSY Shipbrokers, London, can be reached atfix@ssychems.comor +44 12 0750 7507. Information about SSY can be found atwww.ssyonline.com. In the Houston office,Steve Rosenthalof SSY’s Chemical Tanker Department can be reached directly at +1 (713) 652-2700 and Jordi Maymi in Singapore can be reached at +65 6854-7127.