The USG Supramax spot freight market picture looked stable at the beginning of the month with a steady flow of spot cargo offers. However, since a large number of ships from Continent/Mediterranean were ballasting toward the region, this impacted tonnage supply in USG and also prevented rates from moving up.
As the market approached the Christmas holiday, a sharp decline in fixing activity was observed. A severe lack of new cargo offers across all trades, while tonnage built up significantly, led to a dramatic rate fall, especially on fronthaul routes.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$24/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are being discussed at around US$29/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$46/t on average.
Overall, the general sentiment remains negative looking forward. Further rate declines are likely, as the first few months of the year are traditionally the slowest for the USG market. With many vessels still in ballast and looking for employment, quite a significant increase in cargo volumes is required, but it does not look like it will happen anytime soon.
By Brannvoll ApS, Denmark
