Transatlantic westbound shipping rates soften on low demand

11 October 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--Freight rates to move cargoes of easy chems from Rotterdam to the US Gulf have softened by $3/tonne this week amid low demand for vessel space, according to shipping sources on Friday.

Rates to move 2,000 tonnes of easy chems from Rotterdam to the US Gulf are assessed at $55-60/tonne (€41-44/tonne), while rates for 5,000 tonnes of easy chems along this route are assessed at $35-40/tonne.

“There’s no sign of a pick-up in activity,” one source said.

“The Americans are producing too much from shale gas so Europe has nothing to sell them anymore. There’s no arbitrage for anything. Plus EPCA [European Petrochemical Association annual meeting] made things quieter – it had a big impact,” the source added.

The 47th annual EPCA meeting took place on 5-9 October in Berlin, Germany, and many shipping market participants were absent from the market as a result.

“There are lots of open positions but no cargoes,” another source said.

($1 = €0.74)

By: Sarah Trinder
+44 20 8652 3214

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