Transatlantic freight rates to stay high post-Ike

16 October 2008 17:52  [Source: ICIS news]

LONDON (ICIS news)--Freight rates for 5,000 tonne shipments on transatlantic routes remained at levels of $64-69/tonne (€47-50/tonne) westbound and $63-66/tonne eastbound, shipping brokers said on Thursday.

One broker believed that the current pricing trend would be in place throughout October as the US Gulf continued to recover from Hurricane Ike.

“November may see the market begin to soften but these prices will be accurate for October loading,” the source said.

Another North Sea broker confirmed that the westbound route was extremely tight as many traders had already fixed cargoes into the US Gulf.

However, according to one London based broker, product price drops in the US would impact freight rates.

“Aromatics prices are dropping and there is virtually no demand in the US. Freight rates will begin to tail off as the situation evolves,” the source said.

Freight rates rose in the region of $15/tonne after Hurricane Ike hit the US Gulf region in September.

The hurricane closed chemical plants and caused damage throughout the Houston area.

($1 = €0.74)

To discuss issues facing the chemical industry go to ICIS connect

By: Dan Horlock
44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly