Eastbound transatlantic rates drop on oversupply, less activity

25 May 2012 20:06  [Source: ICIS news]

HOUSTON (ICIS)--Chemical freight rates on the eastbound transatlantic route out of the US Gulf fell this week for the first time this year on continued oversupply of shipping space and reduced activity, shipping sources said on Friday.

Eastbound rates from Houston to Rotterdam fell by $5/tonne (€4/tonne) on shipments for 2,000-tonne cargoes, to $60-65/tonne, according to brokers. On larger parcels of 5,000 tonnes or more, rates fell $5 to $50-55/tonne.

The eastbound lane traditionally has been the most active leg of the transatlantic, but business has slacked off in recent weeks.

New fixtures on the westbound leg outnumbered those going eastbound this week for the first time in months, with eight westbound parcels and six eastbound.

As an example of lower eastbound rates, a shipment of 12,000 tonnes of acetic acid from Texas City to the UK loading in late May carried a freight rate in the low $50s/tonne, brokers said.

Rates on the westbound transatlantic remained unchanged, at $53-58/tonne on 2,000 tonnes or more and 40-45/tonne on 5,000 tonnes or larger, sources said.

($1 = €0.80)

By: Lane Kelley
+1 713 525 2653

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