Corrected: Europe to Asia shipping rates drop 10%

01 June 2007 14:28  [Source: ICIS news]

Correction: In the ICIS news story headlined "Europe to Asia shipping rates drop 10%" published on 31 May 2007, please read in the fourth paragraph "...fixed for $80-88/tonne..." instead of "...fixed for $80-88/tonne FOB (free on board) NWE (northwest Europe)..." A corrected story follows:

LONDON (ICIS news)--Spot freight rates on Europe to Asia trades fell by around 10% as cargo levels dropped off in recent weeks leaving a number of vessels with open positions in the Rotterdam region, broker sources said on Thursday.

Expectations that spot rates would soften have been aired by a number of brokers for some weeks, as eastbound spot cargo levels dwindled.

With brokers now saying there were some 32,000-37,000 tonnes of open space available on vessels in June, it appeared the drop has occurred.

One broker told ICIS news that he had heard of cargoes between 3,000-5,000 tonnes of chemicals to Asia being fixed for $80-88/tonne, around 10% below the levels heard two weeks ago.

“Commodity rates for ordinary chemicals have fallen, but that my company is in the specialist chemicals market and that remains firm,” a carrier broker said.

Tokyo Marine, however, has a prompt vessel with 2,000 tonnes of available space in the Amsterdam, Rotterdam, Antwerp (ARA) region, while Stolt will have 10,000 tonnes in mid-June, Odfjell 15,000-20,000 tonnes by the end of June and a MISC vessel, the Bunga Melati Dua, will be open with 5,000-10,000 tonnes of space on 20 June.

“That is a lot of open space in one region and there is no trader business so the outsiders [ship operators who enter the market when they see trader business pushing rates upwards] have not materialised,” said a broker source.

Stolt Nielsen will also deploy two sister-ships, the 27,000 deadweight tonne Ieovoli Splendour and Genaro Ieovoli, the former in mid-June and the latter in July.

Both vessels will be time-chartered but there will not be additional tonnage on the trade, as Stolt Neilsen confirmed they have operated two vessels on the Asia-Europe trade since the beginning of the year and that will remain the same.  

By: Nick Savvides
+44 20 8652 3214

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