The USG Supramax spot freight market started the month on a strong mode with owners being able to maintain robust levels. But by the second half of the month, sentiment softened, with owners asking less for the same trips that had been priced higher a week ago. This downward pressure was mainly caused by a lack of fresh cargoes in the first half of November. The tonnage list in the area was not particularly long, so new cargoes could easily change the balance.
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 discussed at around US$33/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$53/t on average.
Looking forward, the sentiment is largely positive. The deal agreed between the USA and China pledges to reduce tariffs on imports from China from 30 to 20 per cent, the resumption of Chinese purchases of US soybeans, potential for an increase in US energy flows to China and the suspension of recently implemented US and Chinese port fees. An increase in the volume of US soybeans being sold and shipped to China will have a positive effect on the freight shipping rates, allowing shipowners to command premiums.
By Brannvoll ApS, Denmark
