US-Asia chem freight rates rise on expectation of year-end rush

30 November 2012 18:42  [Source: ICIS news]

HOUSTON (ICIS)--US Gulf to Asia chemical freight rates jumped $10/tonne (€8/tonne) this week on expectations of a year-end rush in spot traffic, brokers said on Friday.

Rates on the USG-Asia route rose to $65-70/tonne on cargoes of 5,000 tonnes or larger, brokers said.

For smaller cargoes of 2,000 tonnes or larger, rates increased to $75-80/tonne.

The SSY Base Oils Shipping report said freight rates were somewhat higher, but they could not be confirmed. “The rates appear to have moved more because of owners’ expectations than any great surge in demand,” said the SSY report.

A US broker agreed that chemical freight rates were rising on expectations of the usual year-end surge by producers to clear inventories for tax purposes. But the broker said the rush has been slow in starting this year.

“If it’s going to happen, it’s going to happen in the next two weeks,” the broker said.

($1 = €0.77)

By: Lane Kelley
+1 713 525 2653

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