Prompt chemical freights from Iran to NE Asia rise above $80/tonne

03 May 2012 08:01  [Source: ICIS news]

SINGAPORE (ICIS)--Freights for prompt 10,000 tonne shipments of chemicals from Iranian ports to northeast Asia for May have increased to above $80/tonne (€61/tonne) because of the sanctions against the Middle Eastern country, shipping sources said on Thursday.

This is a significant rise from the freights of $70-75/tonne discussed a week earlier, said the sources.

Freights for a 10,000 tonne shipment of easy chemicals from Saudi Arabian ports to northeast Asia were last assessed at $50-51/tonne on 27 April, data from ICIS showed.

The US-led sanctions against Iran have caused many chemical tanker operators to shun Iranian business as they are unable to obtain insurance coverage.

Insurers based in the EU have since 1 May ceased insuring member operators for petrochemicals shipments originating from Iran, according to a statement by UK P&I Club, which provides protection and indemnity insurance for shipowners.

As a result, prompt chemical freight rates have gone up.

“China-based chemical tanker operators such as Sinochem Shipping and Shanghai Dingheng Shipping have booked May prompt shipments at above $80/tonne,” said a shipbroker. However, this could not be confirmed with either company.

“The outlook for prompt shipment freights from the Middle East Gulf is uncertain as many operators are now heavily contracted because of the weak demand for prompt shipments over the last few months,” said a southeast Asian chemical tanker operator.

($1 = €0.76)

By: Lester Teo

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