Transatlantic freight rates rise on biodiesel demand

15 August 2008 16:21  [Source: ICIS news]

LONDON (ICIS news)--Transatlantic freight rates are rising on increased demand from the westbound route and plenty of biodiesel cargoes heading eastbound, traders said on Friday.

Following rises last week of as much as plus $16/tonne (€10.72) for 2,000 tonne cargoes heading westbound, the increases were more conservative this week, market sources said.

After small increases, freight rates for 2,000 and 5,000 tonne cargoes from Rotterdam to the US Gulf (USG), were at levels of $67-70/tonne and $48-54/tonne respectively.

“There is currently a lot of demand along the westbound route, which is pushing up freight rates,” one trader said.

For the eastbound leg, 5,000 tonne biodiesel shipments had risen to levels in the mid-$50s/tonne, according to one US trader.

Average spot prices were also heard marginally higher at $76-80/tonne for 2,000 tonne cargoes and $63-66/tonne for 5,000 tonnes.

One trader heard levels even higher at around $70/tonne for 5,000 tonne shipments eastbound although this was not deemed representative of general market opinion.

As the holiday season finished transatlantic trade was expected to increase in September although the ramifications of the increasing value of the dollar were still to be seen, one broker said.   

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By: Dan Horlock
44 20 8652 3214

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