Bitumen freight rates rise in China’s Guangdong on tighter controls

11 July 2012 08:24  [Source: ICIS news]

SINGAPORE (ICIS)--Bitumen freight rates have risen in south China’s Guangdong province after the provincial government tightened controls on the delivery of dangerous materials such as petrochemicals in major cities in the Pearl River Delta, following a severe truck explosion that killed 20 people on 29 June, industry sources said on Wednesday.

The accident, which also injured 31 people, happened at around 05:00 hours local time when a truck carrying solvent oils from Sinopec Maoming Petrochemical hit another truck on a bridge in Guangzhou city in Guangdong, according to local media reports.

The provincial government has therefore limited the maximum weight of a delivery to 55 tonnes, including the weight of the truck and the goods. Further details were not immediately available.

Therefore, a truck can carry at most 25-30 tonnes of goods now, compared with 50 tonnes previously, according to a trader, resulting in a rise in freight costs.

Bitumen freight rates rose to yuan (CNY) 0.75-0.80/tonne (12-13 US cents/tonne) on 10 July from CNY0.55-0.60/tonne on 29 June, a trader based in Maoming said.

As the strictest checks are imposed on Sinopec Maoming Petrochemical, some bitumen buyers are turning to purchase cargoes from other producers, such as Sinopec Guangzhou Petrochemical and PetroChina Gaofu Petroleum, market sources said.

($1 = CNY6.37)


By: Alfa Li
020-3762 0271



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