The USG Supramax spot freight market strengthened confidently in August. The USG region maintained a consistent pace of cargo flows on all routes, allowing owners to push rates further up. Additional support came from United States East Coast (USEC) where increased activity was observed and more cargoes entered the market.
The firm activity in the area is likely caused by shippers eager to move their cargo before October, which remains uncertain in terms of US trade restrictions.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$27/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are averaging at around US$33/t. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$54/t on average.
Next month, the USG Supramax market will most likely continue to strengthen with increasing exports from the USA amid the upcoming start of the grain season.
Exporters most probably will be eager to close their deals as soon as possible, as uncertainty about US trade restrictions and tariffs still persist.
By Brannvoll ApS, Denmark
