24 June 2011 20:08 [Source: ICIS news]
HOUSTON (ICIS)--Eastbound transatlantic chemical shipping rates fell last week for small and large cargoes because of the continued oversupply of vessel space in the US Gulf (USG), sources said on Friday.
USG-Rotterdam freight rates fell to $67-72/tonne (€47-50/tonne) on shipments of 2,000 tonnes or more, down from $70-75/tonne, sources said. Rates on 5,000-tonne cargoes on that leg also fell to $55-60/tonne from $57-60/tonne.
A broker attributed the rate slippage to the continuing pileup of ship space in the US Gulf from the flooding of the Mississippi river.
A small chemical cargo booked by the broker in the spring before the flooding now carries a lump sum charge that is $5,000 less, the broker said.
The SSY Base Oils report confirmed that eastbound rates had dropped further as a result of the “chronic backlog of tonnage in the US Gulf”.
Westbound transatlantic rates remained unchanged. Rates for 2,000 tonnes on that leg fell last week by $5/tonne to $55-60/tonne.
The last reduction in eastbound transatlantic rates came in early May.
The rise in marine fuel earlier this month pulled shipping freight rates up temporarily, but bunkers have since fallen back.
Marine IFO 380 fuel in Houston has dropped from the low-to-mid $670s/tonne to about $615/tonne on Friday, and in New York from $695/tonne in early June to below $640/tonne now.
($1 = €0.70)
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