The USG Supramax freight market sentiment remained positive in June. Increased demand for grains and petcoke cargoes was observed, helping shipowners to insist on considerable rate growth across all routes. Thus, rates remained supported throughout the month and followed an upward trend, driven by strong market fundamentals.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$22/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$26.5/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$42/t on average.
Shipowners who work from the US Gulf (USG) and US East Coast (USEC) ports are optimistic and intend to continue raising freight rates, it will heavily depend on what the tonnage list looks like in the short term, especially with vessels not ballasting to East Coast South America (ECSA) anymore since the rates are getting stronger in the USG. Overall, the market reflects a dual sentiment: optimism for spot laycans, but caution and holding back on the forward delivery dates.
by Brannvoll ApS, Denmark
