Freight rates for petrochemicals originating from U.S. Gulf Coast, shipping to Far East Asia rise above US$100/tonne on Dec. 16, up 23% month-over-month on tight supply; supply to stay tight through end of January, market sources say
December 16, 2011
– The cost of shipping petrochemicals from the U.S. Gulf Coast to Far East Asia have increased by US$20 per tonne, or 23% month-over-month for 5,000-12,000 tonnes to reach $103-$110/tonne on Dec. 16, Platts reported the same day.
The demand for chemical freight is huge in the U.S. Gulf at present, but there is limited capacity, a Singapore-based ship broker told Platts.
Tonnage is tight for December and even January at this point, meaning rates will likely remain stable through January, market sources told Platts.
Market sources noted, however, that there would be abundant capacity at the end of January through February, which is likely to bring rates back down.
The primary source of this article is Platts, New York, New York, Dec. 16, 2011.