USG Supramax/Ultramax spot market firms up

USG Supramax/Ultramax spot market firms up
30 May 2022

By Maria Vasyutenko, associate of Brannvoll ApS

The USG Supramax/Ultramax spot freight market firmed up quite fast during April. A fresh influx of demand has entered the market while the tonnage list was thin with charterers chasing after a few available vessels. It should be noted that rates on transatlantic routes are growing faster than on front-haul routes amid the weak Mediterranean and continental markets, while the Black Sea area still is a risk for owners.

Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$40/t (+US$14/t MoM) on average (see Figure 1).  Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$47/t on average. Meanwhile, shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at an average level of US$66/t (+US$11/t MoM).

Figure 1: Supramax freight rates for petcoke from Houston, USA

Overall, the USG market outlook is optimistic for May. Transatlantic rates are most likely to stay strong since the Mediterranean area will remain weak and oversupplied with ships repositioned from the Black Sea. Nevertheless, it should be noted that ballasting vessels from Europe are piling up for May dates, which might put pressure on rates for shipments from USG ports.

Published under Cement News

Tagged Under: freight