USG-Asia rates rise again as ships load up on aromatics

02 August 2013 17:37  [Source: ICIS news]

USG-Asia chemical rates rise again as ships load up on aromaticsHOUSTON (ICIS)--US Gulf-Asia chemical freight rates rose $2-5/tonne (€1.50-3.80/tonne) this week as vessels continued to load up on aromatics, brokers said on Friday.

It was the second rate hike on that trade lane in a week, prompted by strong US styrene demand because of a globally tight market from recent turnarounds and reduced output.

Rates on the USG-Asia route rose to $90-95/tonne for cargoes of 2,000 tonnes or larger, compared with $85-90/tonne previously, brokers said. Rates for 5,000 tonnes or more increased to $70-75/tonne, from $68-73/tonne previously.

The latest report from Odin Marine Group said that the activity might attract other carriers to the route, “but in the meantime expect bullish freight rates over the next couple of weeks".

This week’s SSY Base Oils Report said the freight increase stemmed from a situation of growing demand in recent weeks that finally overtook the supply of ships.

“However, now there is enough demand from both spot and contractual markets that almost every ship for August is full,” said the report.

($1 = €0.76)

Additional reporting by Brian Balboa

By: Lane Kelley
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