- The US Gulf (USG) Supramax freight market began the month with negative corrections, presenting a challenging scenario for shipowners.
- Fresh inquiries were scarce, with a limited number of fronthaul (FH) cargoes and transatlantic (TA) route offers. This created a sluggish environment, dampening market sentiment.
According to International Cement Review, the second half of the month brought a shift in momentum. Increased volumes of petcoke cargoes provided much-needed support, bolstering activity levels. The USG witnessed a rise in petcoke offers for both TA and FH routes, accompanied by emerging grain and coal shipment requirements from the US East Coast.
Freight Rate Insights
The average freight rate for transporting a Supramax-lot of petcoke from Houston to Amsterdam-Rotterdam-Antwerp (ARA) stands at $19.50 per ton with spot laycans. Deals for shipping 50,000 tons of petcoke from Houston to Iskenderun are being discussed at approximately $23.50 per ton on average. The shipping cost for delivering a Supramax-lot of petcoke from USG to East Coast India is around $42 per ton.
Outlook
As the holiday season approaches, higher fixing activity levels are anticipated, with both charterers and owners eager to secure deals. Fresh grain and petcoke orders on Transatlantic, Fronthaul, and InterCaribbean routes are expected to provide substantial support to the market. This uptick in activity is projected to sustain the market’s recovery through the remainder of 2024.
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Source: International Cement Review
