The USG Supramax freight market started the month on a flat note, but in the second half of the month the rates fell on all routes, with brokers reporting a surplus of tonnage. Additional pressure came from the weakened Panamax segment and in some cases, it was cheaper to hire a Panamax for transatlantic routes. While owners actively resisted downward pressure on rates, success was limited. Tensions in the Middle East added to uncertainty, slowing the market activity even more, while no dramatic bunker price fluctuations were observed. Participants refer to the holiday lull and expect the segment to pick up closer to the end of summer.
Freight rates for shipping a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are averaging US$28/t. Deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US$36/t on average.
Delivery of a Supramax-lot of petcoke from USG to EC India averages at US$59/t. The USG Supramax freight market is expected to pick up once the US grain season starts in September. Record grain demand for 4Q is expected and should provide support to the freight market across all tonnage groups in USG.
