Eastbound transatlantic chemical rates rise on lack of ship space

12 September 2013 18:43  [Source: ICIS news]

HOUSTON (ICIS)--Eastbound transatlantic chemical freight rates continued to rise this week on a lack of shipping space in the US Gulf, brokers said on Thursday.

Eastbound rates on 2,000-tonne shipments increased to $65-70/tonne (€49-53/tonne) from the previous $60-65/tonne.

Rates also rose on 5,000-tonne cargoes for the fourth time in less than a month to $50-55/tonne from $48-52 previously.

Eastbound rates have been rising steadily in recent weeks on a steady surge of styrene and aromatics cargoes to Europe.

Brokers said the market is tight on vessel space and likely to remain so going into October.

The latest report from Odin Marine Group noted that September space was thinning out rapidly in the US Gulf region, maintaining bullish freight rates.

“The lack of space in the market is the primary driver putting pressure on freight rates as opposed to a major increase in cargo activity,” the Odin report said.

Odin’s report added that traders are hoping that demand for styrene and lubes in Europe will prompt outside carriers to move ships to the region and stabilise freight rates.

($1 = €0.75)

By: Lane Kelley
+1 713 525 2653

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