US transatlantic eastbound rates drop on slow traffic

HOUSTON (ICIS)–US transatlantic eastbound chemical freight rates fell by $5/tonne this week because of a slowdown in traffic, brokers said on Wednesday.

A broker said that last week there were shipments in the mid-to-high $60s/tonne on 5,000 tonnes from Houston to Rotterdam, but this week there was a report of a fixture in the low-to-mid $60s/tonne for May load dates.

The eastbound leg continues to be an active trade-lane, “although after a recent rush of activity and run-up on freight rates, it appears things have slowed a bit,” a broker said.

Rates from Houston to Rotterdam fell by $5/tonne on shipments of 2,000 tonnes or less to $80-85/tonne from $85-90/tonne previously. Charges on shipments of 5,000 tonnes or less dropped to $60-65/tonne from $65-70/tonne previously.

The latest SSY Base Oil Shipping Report said the transatlantic eastbound “is one of those routes drawing questions”.

SSY said there is plenty of cargo to ship, but that charterers are unwilling to pay the going rate and that owners “are feeling a little more nervous asking for rates much larger than those in the low $60s/tonne, even if there is still a substantial amount of material drawing enquiries”.