ATLANTIC HANDYSIZE DRY: Front-haul rates rising on higher demand
Front-haul rates have been climbing in the US Gulf Coast, with Supramax owners raising offers due to higher demand from charterers and expectations of a strong fourth quarter.
According to shipbroking sources, front-haul rates have risen to $19,500/d on Tuesday for 58,000 dwt vessels to take grain stems to China from the USGC for first-half September dates. This is a $2,000/d increase from Friday. A shipbroker said there are high levels of demand from charters with grain stems. Owners have also raised their offers because the USGC market has been rising consistently for three weeks, sources said.
On East Coast South America, front-haul rates have also ticked up. According to shipping sources, 58,000 dwt Supramax owners are seeing $12,500/d plus $250,000 ballast bonus to take grain stems from ECSA to the Far East. This is a moderate improvement from $12,000/d plus $200,000 ballast bonus on Friday. Sources said rates are rising because owners can see the USGC is firming and are asking for higher rates to leave the Atlantic.
Rates for trans-Atlantic cargoes have increased, with owners achieving $13,500/d to take Supramax stems from USGC to Amsterdam-Rotterdam-Antwerp, which is $500/d higher than at the end of last week. Shipping sources said trans-Atlantic inquiry is still lagging behind the front-haul demand, but volumes are sufficient to see rates rise.
Source: Platts
