Base oils

HOUSTON (ICIS)–The container ship that essentially closed the Port of Baltimore on 26 March after it struck the Francis Scott Key Bridge, causing its collapse, is set to be moved now that the mangled remnants of the span was removed from the ship’s bow with controlled blasts on 13 May. The Key Bridge Response Unified Command (UC) used precision cuts made with small charges to remove a large section of the bridge from the Dali, which will now be refloated and moved to another part of the port. While not a big hub for chemical imports/exports, the closure of the port had some ripple effects for logistics in the region. US-based catalyst producer WR Grace said operations at its Curtis Bay Manufacturing site, located to the northwest of the collapsed bridge, have been unaffected despite its proximity to the accident site. Chemicals make up only about 4% of total tonnage that moves through the port, according to data from the American Chemistry Council (ACC). The ACC said less than 1% of all chemicals involved in waterborne commerce, both domestic and trade volumes, pass through Baltimore. But Baltimore is the largest US port for handling exports and imports of vehicles and farm equipment. Since opening a fourth temporary channel into the port earlier this month, 171 commercial vessels have transited the waterway, including five of the vessels that were trapped inside the port. The MSC Passion III entered the port on 29 April, according to vesselfinder.com, making it the first container ship to enter the port since the accident. There are two container ships and a roll-on, roll-off (RoRo) vessel – designed to carry wheeled cargo – in the port on 14 May, according to vesselfinder.com. The US Army Corps of Engineers (USACE) is aiming to reopen the permanent, 700-foot-wide by 50-foot-deep federal navigation channel by the end of May, restoring port access to normal capacity. Container ships have been rerouting to other East Coast ports.

14-May-2024

SAO PAULO (ICIS)–Plastics producers in Rio Grande do Sul remain shut following the floods but are working under the “hypothesis” operations could normalize by the end of May, a full month after the floods hit the Brazilian state, trade group Abiplast said. As such, they have made calculations for losses in revenue during a month, since 29 April when the floods started until the end of May. According to the trade group, the estimated impact on plastics producers in the state could come up to Brazilian reais (R) 680 million ($132 million), or an estimated daily impact of R$23 million since the floods started on 29 April. Rio Grande do Sul and its petrochemicals hub in Triunfo, near the city of Porto Alegre, is home to 40% of Brazil’s polyethylene (PE) and polypropylene (PP) production capacities. Despite the end of May hypothesis, a spokesperson for the trade group conceded that as things stand – with hundreds of roads still blocked and workers unable to turn up for duty – to set a date for restart of operations would be premature, however. “Plastics transformers’ plant have stopped …The [estimated costs would include the] costs of potential renovations and recovery of assets in the areas degraded,” said Abiplast. “The main plastic products could also suffer price increases if there is an increase [in selling prices] by manufacturers.” Several petrochemicals companies based at the Triunfo production hub, near the state’s largest city of Porto Alegre, declared force majeure last week, including Brazil’s polymers major Braskem, Innova and Arlanxeo. Thai major Indorama’s subsidiary in Brazil said to ICIS it had suspended operations. Meanwhile, fertilizers players have said to ICIS demand could be hit considering the state’s prowess within Brazil’s large agricultural sector. Analysts at S&P Global have also said fertilizers could be greatly hit, although they said petrochemicals could be spare from a large impact if the situation normalizes in coming days or weeks, at most. TRIUNFO: KEY TO PLASTICSAccording to figures by Abiplast, Triunfo has production capacities of 740,000 tonnes/year for PP, and of 1.2 million tonnes/year for PE, with a large chunk of that belonging to Braskem, for whom the Triunfo facilities represent 30% of its production capacity in Brazil. Braskem is the sole manufacturer of polyethylene (PE) and polypropylene (PP). Its market shares in 2023 were about 56% and 70%, respectively, according to figures from the ICIS Supply and Demand Database. Brazil’s PP capacity is nearly 2 million tonnes/year, while PE capacity is about 3 million tonnes/year, of which 41% is high density polyethylene (HDPE), 33% is linear low density polyethylene (LLDPE) and 26% is low density polyethylene (LDPE). The Triunfo complex can produce 740,000 tonnes/year of PP, 550,000 tonnes/year of HDPE, 385,000 tonnes/year of LDPE and 300,000 tonnes/year of LLDPE. The company said last week it was confident it will be able to deliver material from its other sites in the country, but sources have pointed out some of the specialized PE grades are only produced at Triunfo, and feared a hit to supply and increasing prices if the disruption in Rio Grande do Sul prolongs. According to Abiplast, there are 1,428 plastic processing and recycling companies in Rio Grande do Sul, the second largest state in Brazil in number of plastic processing companies, behind Sao Paulo’s 5,200 companies. The state’s plastics sector employs 33,100, added the trade group. Their sales in 2023 stood at R8.2 billion, or 7.1% of the total revenue posted by Brazilian plastics processing industry of R117 billion. The tragedy has consumed the Brazilian government since the second week of the floods – after a rather slow response during the first days. Some analysts have described this as Brazilian President Luiz Inacio Lula da Silva’s ‘Katrina moment’ as a reference to the poor handling of the Hurricane Katrina in the US in 2005 by former President George W Bush. Additional reporting by Bruno Menini Front page picture: A sign in Sao Paulo calling residents to collaborate in the floods relief effort Source: Jonathan Lopez/ICIS 

14-May-2024

HOUSTON (ICIS)–The biggest plastics trade show in the Western Hemisphere returned last week after a six-year hiatus. Delegates returned to consider an industry that is increasingly being shaped by government policy which is favoring sustainability and electric vehicles (EVs) while restricting the use of some classes of chemicals that are used in processing aids. SUSTAINABLE CONTENTThe regulatory outlook is influencing companies' sustainability goals, and that is influencing which plastics they buy and which ones are made by producers. Sustainability was the most prominent theme at the show. The title of the keynote address given by BASF Corp CEO Mike Heinz was "Our Plastics Journey: The Road to Shaping a Sustainable Future". Other examples of sustainability at the show include the following: Executives from SABIC and NOVA Chemicals talked at lengths about what their companies are doing to incorporate more recycled content into their materials. Renewable plastics producers CJ CheilJedang and Danimer Scientific had booths showcasing their grades of polyhydroxyalkanoate (PHA), a renewable polyester. GREENMANTRA showcased its chemical recycling technology, which breaks down plastics to produce waxes, which are then then uses to make additives that make it easier to incorporate waste plastic into finished products. If the exhibitor booths and keynote address weren't enough to drive home the prominence of sustainability, delegates only had to consider the recent round of talks for the UN plastic waste treaty. It was held just days before NPE. While the plastics industry is advocating curbs on pollution, several groups at the talks were pushing for curbs on production. US lawmakers have repeatedly introduced bills that would impose moratoria on new plants. A small number of US states are adopting mandates that require minimum amounts of recycled content. A few states are also adopting policies calling for extended producer responsibility (EPR). The outlook of regulations is causing consumer goods producers and other plastic consumers to start seeking out sustainable materials now, so they have time to rearrange their supply chains and so prepare for the anticipated regulations. POLICIES PROMOTING EVS, LIGHTWEIGHTINGGovernment support should rekindle sales of EV and pull them out of what could be a temporary lull, according to BASF. The world will need more EVs if it wants to achieve its carbon-cutting goals. In the US, the federal government and individual states are adopting and proposing policies that will promote EV adoption. The Environmental Protection Agency (EPA) introduced a new tailpipe rule that will require the US light vehicle fleet to emit progressively smaller amounts of carbon dioxide (CO2). The EPA is expected to decide if California can adopt its Advanced Clean Car II (ACC II), which would phase out the sale of ICE-based vehicles by 2035. If the EPA grants California's request, that would trigger similar programs in several other states. The US Department of Transportation (DOT) is proposing stricter efficiency standards under its Corporate Average Fuel Economy (CAFE) program. EVs have material challenges that are different from automobiles powered by internal combustion engines (ICEs), and these are increasing demand for new grades of plastics. Some plastics will need to tolerate higher voltage environments, while others will need good thermal management properties. BASF and other companies at NPE showcased how several of their materials were meeting these challenges. At the same time, auto companies will want materials that will lighten their vehicles so they can travel farther on a battery charge. ICE automakers also want to lighten their vehicles, in part to comply with stricter emission requirements. Longer term, Dow highlighted the revolutionary ramifications that autonomous vehicles will have on the plastic industry. Such vehicles are driven almost entirely by machines, which should greatly reduce crashes and accidents. Dow said automakers could replace nearly all steel and aluminum paneling used in automobiles with plastic alternatives. SUBSTANCES OF CONCERNDow and Clariant highlighted the ramifications of substances of concern, so called because regulators are concerned about their effects on safety. The latest such substance include per- and poly fluorinated alkyl substances (PFAS), which are used in many polymer processing aids (PPAs). Clariant has recently introduced a hydrocarbon-based processing aid. Longer term are the possible ramifications of the prioritization process that the EPA has started on five chemicals. The regulator would like to start the prioritization process on five additional chemicals each year. The prioritization process is the first step in determining whether a chemical poses an unreasonable risk. If the EPA makes such a finding, then it will proceed with the risk management phase, in which it will propose ways to manage the unreasonable risks. If the chemicals are used in plastics, then any subsequent restrictions could cause companies to find alternative materials. EXCESS PLASTICS CAPACITYExcess plastic capacity will likely persist even as destocking ends and demand recovers. NOVA Chemicals expects future expansion will be on pause until later in the decade. Lost cost regions like North America should suffer less than higher cost regions like Europe. SABIC recently started up its first ethylene and PE production in the US through its joint venture with ExxonMobil, while announcing plans to shut down a cracker in Europe. The company did not rule out further capacity rationalizations Produced by Plastics Industry Association (PLASTICS), NPE: The Plastics Show took place 6-10 May in Orlando, Florida. Insight by Al Greenwood Thumbnail shows cups made out of plastic. Image by Shutterstock.

14-May-2024

LONDON (ICIS)–Increases in crude oil supplies from outside the OPEC+ bloc of countries is expected to decline slightly year on year in 2025, with the US and Canada expected to remain the backbone of OECD production increases and Latin America driving the rest of the world, according to OPEC. The group projects that crude supply growth from countries that are not signed up to the declaration of cooperation (DoC)– encompassing OPEC member states and ally nations that have agreed to coordinated production cuts – will stand at 1.1 million barrels/day next year. Representing a modest decline from the 1.2 million barrel/day production growth OPEC projects for non-DoC nations this year, the 2025 increase is expected to drive total output from the region to 54.1 million barrels/day. The US is expected to drive a substantial proportion of the total production growth expected from non-DoC nations, representing nearly half of the total projected growth at 0.5 million barrels/day, while Canada is expected to increase output by an average of 0.2 million barrels/day. Latin America is expected to be the key source of non-OECD growth excluding OPEC+ countries, with output expected to grow 0.3 million barrels/day next year on average, a slight decline from the 0.4 million barrels/day projected for this year. Interest rates, inflation, geopolitics and reduced investment in exploration and production by oil majors as players seek to clip costs are all serving to cloud the picture on future demand and output, OPEC added. “The anticipated trajectory and pace of inflation's decline, particularly within the services sector, are poised to influence crude oil production costs going forward,” OPEC said in its monthly oil report. “The potential influence of the present limited investment commitment in upstream E&P projected for 2024 and 2025 on production levels remains uncertain amid an ongoing drive for efficiency and enhanced productivity throughout the industry,” the cartel added. The organization left its 2024 non-DoC oil supply, global demand and GDP forecasts unchanged from its April report, at 1.2 million barrels/day, 2.2 million barrels/day and 2.8% respectively. Thumbnail photo: An oil well in Jebel Dukhan, Bahrain. Source: Jakub Porzycki/NurPhoto/Shutterstock

14-May-2024

LONDON (ICIS)–German economic sentiment improved further in May from the previous month following stronger-than-expected growth in the first quarter, research institute ZEW said on Tuesday. Its sentiment indicator increased by 4.2 points from April to 47.1, the highest level since March 2022. Source: ZEW The Mannheim-based group’s assessment of the current economic situation in Germany was also higher, by 6.9 points to -72.3. Source: ZEW In the wider eurozone, ZEW’s economic sentiment indicator and current assessment were also up from April. “The confidence increases. Following the stronger-than-expected growth of the German economy in the first quarter of 2024, both the assessment of the current situation and economic expectations have become more favourable,” ZEW President Achim Wambach said. Signs of an economic recovery are growing, bolstered by better assessments of the overall eurozone and of China as a key export market. “The increased optimism is reflected in particular in the sharp rise in expectations for domestic consumption, followed by the construction and machinery sectors,” Wambach added.

14-May-2024

NEW YORK (ICIS)–Chemicals distributor Univar Solutions is seeing relatively steady demand this year with greater strength on the specialties side versus industrials. Meanwhile, the North America reshoring trend is set to drive demand in later years as new manufacturing plants are built, its CEO said. “We had a good Q1. We saw modest growth in our industrial business and better growth in our ingredients and specialties business. Our results on [the latter] side would have stood out very favorably against our public peers in that space,” said David Jukes, CEO of Univar Solutions, in an interview with ICIS. Looking ahead, while a number of chemical producers expect a stronger demand pick-up in H2, there is little evidence to point to that at the moment, he pointed out. “Whether there will be a [meaningful] recovery in H2, I don’t see what that’s based on, other than hope. Hope is not a strategy and so we’re managing our business very carefully,” said Jukes. “We have grounds for optimism that we’re going to see some growth, irrespective of what the market does. Whether the market will have a H2 recovery, I have absolutely no idea. I think that’s based on, ‘It’s got to get better some day’. If it does, that’s great but I’m not banking on that. We think our future is very much in our own hands,” he added. Univar has improved its reliable delivery performance and customer NPS (net promoter scores) to record levels, with its digital channels helping to keep customer business “stickier”, as well as attract new customers, the CEO said. Demand for durables continues to lag, and there is no surge of restocking yet. “Consumers don’t think the economy is going very well… That’s [US President Joe] Biden’s problem right now. No matter how much you say it, consumers aren’t seeing it. Airline tickets and hotel rooms may be expensive, but refrigerators and cars are still on discount,” said Jukes. “We’re through all the destocking of last year but you’re not seeing wholesale restocking. You’re seeing people buying for what they need today and what they need for tomorrow [rather than longer term],” he added. Univar’s fast and reliable service model can help customers stock up when they need it, but one consequence is that it does not have solid medium-term visibility since customers are not ordering for six months from now, he pointed out. “We’re seeing steady demand. People are not expecting prices to fall and not expecting them to rise, and are buying things as they need them. If something fundamental changes in demand patterns, it would be nice, but we don’t bank on that,” said Jukes. HEIGHTENED COMPETITION LEADS TO INNOVATIONA more competitive market in chemicals is leading to greater demand for innovation when it comes to formulations, the CEO said. “When markets get highly competitive as they are now, the specialty players look for ways to differentiate their products. Our formulation labs and kitchens, and our applications development people are really busy being innovative,” said Jukes. “People will want to change a formulation, and create something different as a way of getting competitive advantage, particularly as you think about having more sustainable products in those portfolios. We’re seeing a lot of activity and growth in this area,” he added, pointing to more innovation taking place in the specialties and ingredients area. RESHORING/NEARSHORINGMeanwhile, the reshoring/nearshoring trend is pointed to boost demand for chemicals in North America in the coming years, with some impact already kicking in, he said. “This is happening, and macroeconomics and global events are feeding into that, whether it’s Red Sea disruptions, worsening relations with China or [turmoil] in the Middle East. We’re having them all at once at the moment, so there is a heightened trend to that reshoring and nearshoring,” said Jukes. “Some of that we won’t see the full impact of, for a couple of years because it takes time to build the infrastructure. But certainly for our North America business, we are seeing good signs, and that will only pick up over the coming years,” he added. DOMESTIC SOURCING AND TARIFFSFor many years, Univar has deliberately sourced the vast majority of its products domestically. Thus, even being a global distributor, the rising trend of protectionism through tariffs is not a major concern. “It’s been a deliberate strategy for us for a number of years… What it does create are some opportunities for us to move domestically sourced product for people who are being impacted by it. That tends to be some of the smaller companies,” said Jukes. “We source domestically and sometimes that means you perhaps find yourself on the wrong side of a very competitive product that’s coming in, but we’re not running this business for this month. You’ve got to take a longer view on this – you can’t live from transaction to transaction,” he added, noting that Univar is celebrating its 100th year anniversary this year. “We’ve taken a much more longer-term strategic view, and it’s served us well,” said Jukes. North America accounts for 75-80% of Univar’s sales, with Europe at 20-25%. The distributor also has a very small presence in China. Interview article by Joseph Chang

13-May-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 10 May. Europe propylene supply rebalancing on derivative restart, cracker issues Propylene spot supply is returning to a more balanced position with a key derivative unit now back on stream and a couple of cracker issues disrupting output. Europe businesses face tough market and regulatory hurdles in long term – LyondellBasell Market conditions in Europe are likely to remain challenging in the long term while changing regulations are increasing costs for businesses, LyondellBasell Industries said on Thursday, after announcing a strategic review for most of its operations in the region. LyondellBasell launches review of European assets LyondellBasell has launched a strategic review of the bulk of its operations in Europe, the producer said on Wednesday, based on its strategy to focus on assets perceived to have long-lasting competitive advantage Chandra Asri aspires to become regional player with Shell Singapore purchase Chandra Asri is looking to develop its presence in southeast Asia and become a key regional player with its purchase of Shell’s refining and petrochemicals assets in Singapore alongside commodities major Glencore, the Indonesia-based firm said on Wednesday. IPEX: April index rises for fourth month in a row on firmer pricing in northwest Europe, northeast Asia The ICIS Petrochemical Index (IPEX) was up 1.5% in April month on month as production constraints continue to push contract prices up across some commodities, mainly in northwest Europe and northeast Asia. BASF puts ammonia, methanol, melamine plants up for sale at Ludwigshafen BASF has engaged plant sale specialists International Process Plants (IPP) to sell idled ammonia, methanol and melamine units located at its loss-making Ludwigshafen site in Germany.

13-May-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 10 May 2024. PODCAST: APIC ‘24: Asia recycled plastics sees sustainable finance focus By Damini Dabholkar 10-May-24 12:22 SINGAPORE (ICIS)–Sustainable finance is a key interest for companies seeking to enter the recycled plastics market in Asia or to expand their current capacities. Despite the various financial instruments available, the absence of a clear entry point often results in uncertainty for firms. In this podcast, ICIS analysts Chua Xin Nee and Joshua Tan explore the different types of sustainability-related loans available and their successful use cases. China-SE Asia arbitrage flow for MTBE unworkable on oil price falls By Keven Zhang 10-May-24 11:50 SINGAPORE (ICIS)–The arbitrage of methyl tertiary butyl ether (MTBE) from China to southeast Asia can be reopened, after blenders in southeast Asia finish consuming their existing inventory. PODCAST: Weak demand expected for Asia propylene and downstream PO By Damini Dabholkar 09-May-24 15:02 SINGAPORE (ICIS)–Asia's propylene market will continue to see weak demand, although potential curbs in plant run rates in China amid weak margins could lend support. China exports return to growth in April amid signs of improving demand By Nurluqman Suratman 09-May-24 14:31 SINGAPORE (ICIS)–China’s April exports rose by 1.5% year on year to $292.5 billion in April, reversing the 7.5% contraction in March supported by signs of improved global demand, customs data showed on Thursday. China petrochemical market edges up in Apr, demand outlook remains weak By Yvonne Shi 08-May-24 13:20 SINGAPORE (ICIS)–China’s petrochemical market edged up in April, with the ICIS China Petrochemical Index – which tracks 17 key products in the domestic market – rising slightly by 1.60% to 1267.60 by the end of the month as compared with March. Singapore April manufacturing slows amid persistent external headwinds By Nurluqman Suratman 07-May-24 11:59 SINGAPORE (ICIS)–Singapore’s manufacturing activity fell in April as a result of decreased export orders triggered by external demand headwinds and high global interest rates. NE Asia C3 talks to kick off, but supply concerns weigh on buyers By Julia Tan 06-May-24 12:02 SINGAPORE (ICIS)–Discussions for June arrivals will kick off as China returns from the Labour Day holidays, even with the potential headwinds of poor downstream demand and ample supply from Southeast Asia.

13-May-2024

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is anticipating larger corn and soybean supplies and ending stocks according to the May World Agricultural Supply and Demand Estimate (WASDE) report. For corn, the outlook is for not only increased supply and stockpiles, but also greater domestic use and exports with the current corn crop being projected at 14.9 billion bushels. This is a dip of 3% from last year’s record as a decline in area is partially offset by an increase in yield. Right now, the yield projection is at 181.0 bushels per acre and is based on a weather-adjusted trend assuming normal planting progress and summer growing season weather, estimated using the 1988-2023 period. With higher beginning stocks, total corn supplies are forecasted to be at 16.9 billion bushels, the highest since 2017-2018. Total US corn use is forecast to rise just under 1% relative to a year ago on higher domestic use and exports. Food, seed and industrial use is forecast at 6.9 billion bushels. Corn used for ethanol is unchanged relative to a year ago, based on expectations of flat motor gasoline consumption. Feed and residual use is projected higher on larger supplies and lower expected prices. Corn exports are forecasted to rise by 50 million bushels to 2.2 billion bushels, supported by a reduction in exports for Argentina, Brazil, Russia and Ukraine with the US projected to be the world’s largest exporter for the second consecutive year, with an expected increase in global market share. With total US corn supply rising more than use, ending stocks are up 80 million bushels from last year, and if realized, would be the highest in absolute terms since 2018-2019. The season-average farm price for corn is now being projected at $4.40 per bushel. For soybeans, the monthly update is calling for not only higher supplies and ending stockpiles but also upticks in exports. Currently the soybean crop is being projected at 4.45 billion bushels, up 285 million bushels on higher area and trend yield. With higher beginning stocks and production, soybean supplies are forecast at 4.8 billion bushels, up 8% from 2023-2024. Soybean exports are forecasted to come in at 1.83 billion bushels, which would be up by 125 million bushels from 2023-2024 with higher exports this fall due to a lower Brazilian 2024 harvest. With strong seasonal exports after harvest followed by pressure from larger South American production in 2025, the US. share of global exports is forecast at 28%, down from the prior five-year average of 32%. Ending stocks are projected at 445 million bushels, up 105 million bushels from last year. The current season-average soybean price is forecasted at $11.20 per bushel compared with $12.55 per bushel in 2023-2024. The next WASDE report will be released on 12 June,

10-May-2024

HOUSTON (ICIS)–Global rates for shipping containers are surging, liquid chemical tanker rates were mixed, and wait times at the Panama Canal have eased, highlighting this week’s logistics roundup. CONTAINER RATES Container rates surged this week after rising last week for the first time since January amid general rate increases (GRIs) implemented because of rising demand and as continued Red Sea diversions have overall capacity fully deployed. Maersk CEO Vincent Clerc said during a Q1 earnings conference call that demand is trending toward the higher end of its guidance. Average global rates surged by 16% over the week, according to supply chain advisors Drewry and as shown in the following chart. Meanwhile, rates from Shanghai to the US West Coast jumped by 18%, and rates from Shanghai to the East Coast soared by 16%, as shown in the following chart. Drewry expects freight rates ex-China to continue increasing in the upcoming week amid a huge demand spike and tight capacity. Capacity is growing from newly built ships, according to international freight platform ShipHub, who said that 2.83m 20-foot equivalent units (TEUs) of container ship capacity is on order for 2024, after 2.34m TEUs were ordered in 2023. That is almost double the capacity added in 2021 and 2022, which were both around 1.1m TEUs. Shipping analysts Linerlytica said that over-capacity concerns are on the backburner with containership diversions to the Cape route effectively removing more than 7% of the total fleet. Rates from North China to the US Gulf were flat this week after spiking the previous week, as shown in the following chart from ocean and freight rate analytics firm Xeneta. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID CHEM TANKER RATES US chemical tanker freight rates assessed by ICIS were mostly unchanged but fell from the US Gulf (USG) to ARA. From the USG to Rotterdam, there are bits of part cargo space still available for April. This trade lane has been mostly quiet over the last few weeks. If this trend continues, this route could face further downward pressure. On the other hand, from the USG to the Caribbean, rates have risen slightly since last week leaving the market overall mixed. Methanol continues to be active out of this market to various destinations. From the USG to Brazil, space remains tight despite the slow market as only a handful of indications being seen in the market.  Space is available for H1 May out of Columbia and H2 May out of the USG. Although ICIS does not assess spot rates from the USG to the Mediterranean, this trade lane has continued to tighten up, with several cargoes of Glycols, Caustic and Veg Oil fixed. There is limited space for May which may likely cause rates to further tighten, although there could be some working space for June. PANAMA CANAL Wait times for non-booked vessels ready for transit fell for both northbound and southbound transits this week, according to the Panama Canal Authority (PCA) vessel tracker and as shown in the following image. Wait times a week ago were 4.4 days for northbound traffic and 6.5 days for southbound vessels. The PCA will increase the number of slots available for Panamax vessels to transit the waterway beginning 16 May and will add another slot for Neopanamax vessels on 1 June based on the present and projected water levels in Gatun Lake. PORT OF BALTIMORE The Key Bridge Response Unified Command (UC) is scheduled to use precision cuts made with small charges to remove a large section of the Francis Scott Key Bridge wreckage from on top of the container ship Dali, which struck the bridge on 26 March and caused its collapse. Source: Key Bridge Response 2024 The exact time of the precision cuts will depend on multiple environmental and operational factors. The closing of the port did not have a significant impact on the chemicals industry as chemicals make up only about 4% of total tonnage that moves through the port, according to data from the American Chemistry Council (ACC). The ACC said less than 1% of all chemicals involved in waterborne commerce, both domestic and trade volumes, pass through Baltimore. Additional reporting by Kevin Callahan

10-May-2024