NE Asia freight rates for 5,000-tonne vessels soften on weak demand

02 August 2013 03:07  [Source: ICIS news]

SINGAPORE (ICIS)--Intra northeast Asia freight rates for 5,000-tonne chemical tankers were soft amid weak demand, according to at least two shipping sources on Friday.

Freight rates from South Korea to the Chinese ports of Tianjin and Ningbo, and to Taiwan were assessed in the low $20s/tonne (€15/tonne) for 5,000 tonne vessels for the week ended 26 July, according to ICIS.

However, shipowners had no choice during the week but to agree to freight rates of below $20/tonne for 5,000 tonne vessels from South Korea to Tianjin, Ningbo and Taiwan to spur end-users interest.

“Demand is weak now. So shipowners had no choice but to lower rates to remain competitive,” a Japanese shipbroker said.

Vessel supply for 1,000 and 3,000 tonne vessels remained tight, according to another northeast Asian-based shipbroker.

The shipbroker added freight rates for such smaller-sized ships were stable on the back of subdued trade.

($1 = €0.76)  

By: Muhamad Fadhil
+65 6780 4356

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