USG freight market stable supported by demand
By Brannvoll ApS, Denmark
The USG Supramax freight market remained largely supported during the month, especially on fronthaul routes as petcoke demand remained strong and shipments to India and the Far East were regular.
Additionally, grain cargoes were entering the market more often thanks to resolved logistic issues in the Mississippi River (low draught issues in the Mississippi River complicated barge traffic and slowed down exports considerably last month). Owners started to raise their offers in response to improved demand, but so far rates remain stable, balanced by slightly excessive tonnage supply in the region.
Supramax freight rates for petcoke from Houston, USA
Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$49/t on average (+US$2/t MoM).
Supramax/Ultramax rates may grow for shipments from USG as the region is finally gaining momentum in terms of grain exports and the pre-Christmas spike of activity will allow owners to push rates up amid a gradually increasing number of cargo offers. Additional support will come from strengthening Panamax and FFA markets.
Published under Cement News