Asia chemical freight rates see $1/tonne rise

11 July 2008 07:54  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian chemical freight rates have risen $1/tonne this week on record bunker prices, industry sources said on Friday.

Freight rates firmed for all Asian destinations due to record high bunker prices, which hit the $725/tonne mark early this week.

Shipowners had been unable to raise freight rates for the past month despite surging crude prices, as demand for tonnage had been lacklustre.

 Players noted that there was a sudden surge in spot enquiries for chemical tonnage this week.

Chinese charterers were looking for vessels to ship parcels of paraxylene, styrene monomer and MEG before the restriction on cargoes moving into China during the Olympics in Beijing came into effect.

"Although there is a sudden spike in enquiries for chemical tonnage, we are not seeing much fixed yet," a broker said.

Players expected the improving market sentiment to last one-two months.

Freight rates for 2,000 tonne easy chemicals were up by $1/tonne, with prices for the voyage between South Korea and Singapore pegged at $40-42/tonne and $39-42/tonne for the South Korea-Bangkok route.

Rates for the South Korea to Taiwan route were up to $28-29/tonne and South Korea to Shanghai at $24-26/tonne.

Rates for 3,000 tonne easy chemicals also rose $1/tonne to $18-20/tonne from South Korea to mid-China and from Taiwan to mid-China at $22-23/tonne.

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By: Desmond Chia
+65 6780 4359

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