The USG Supramax market has rallied considerably. In the first half of February rates skyrocketed for spot laycans amid very tight tonnage supply in the region. Additional support came from increased front haul and transatlantic demand. A week later, the momentum reverted sharply and rates started dropping back as fresh cargoes thinned and the ballasters attracted to the basin started to arrive. Escalating tensions arising from the US-Israeli offensive on Iran have heightened uncertainty among shipowners.
Thus, USG Supramax rates inched up on all routes, mainly amid rising bunker prices and unwillingness by owners to fix their ships to the east Mediterranean or India.
Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$31/t on average. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$37.50/t on average. Delivery for a Supramax-lot of petcoke from USG to EC India are at US$55/t on average.
A lack of new cargo requests next month is expected, while the growing vessel count in the USG amid ballasters will most likely have a negative impact on corresponding rates. In the meantime, if bunker prices rise further, shipowners will be increasingly squeezed on longer voyages and will be reluctant to discount.
By Brannvoll ApS, Denmark
