Europe to US MRs up on Colonial closure
Europe to US MR freight rates pushed higher today, on the back of the cyberattack that forced the closure of the US Colonial Pipeline over the weekend.
Norwegian refiner Equinor put the Nord Majestic on subjects from Mongstad to the US Atlantic coast at WS160, which equated to a UK Continent to US Atlantic coast rate of WS160 ($20.62/t) as a WS5 premium for the Norwegian load port offset a WS5 discount because the ship recently carried palm oil. This was WS35 ($4.51/t) higher than the rate of WS125 ($16.11/t) on 7 May.
At least one charterer received an offer for a UK Continent to US Atlantic coast cargo at WS165 ($21.27/t), and some shipowners reportedly targeted up to WS180 ($23.20/t). But many charterers were still hesitant to agree to bookings until the timetable for the restoration of the Colonial pipeline is more clear.
A closure at the Colonial Pipeline in August 2017 — when Hurricane Harvey hit the US Gulf coast — caused the UK Continent to US Atlantic coast rate to jump by $15.89/t in the space of a week. The rate climbed to $27.40/t on 1 September 2017, up from $11.51/t on 25 August, before sliding to $10.96/t by 15 September once the pipeline reopened.
The scale of the current closure's impact on the freight market will depend on how quickly service is restored. So far the company has restored operations at terminals and smaller branch lines moving fuels to inland markets. But the major trunk lines moving fuels from the largest US refining hub to the Atlantic coast remain shut.
MR freight rates had already been inflated by a buoyant Europe to US MR market last week as US demand for European gasoline surged on the back of rising prices in the US Gulf, which encouraged the Atlantic coast blenders to switch to European imports. This additional demand tightened vessel supply and pushed the rate up by WS15 ($1.93/t) on a net basis last week.
The arbitrage window for European gasoline into the US has been kept closed recently by the rising cost for US blenders to comply with the US Renewable Fuel Standards (RFS) but opened briefly last week leading to a spate of bookings.
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US Coast Guard to assess port infrastructure risks
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Houston, 20 May (Argus) — Federal officials will conduct a study of US port infrastructure safety nearly two months after a massive containership brought down the Francis Scott Key Bridge at the Port of Baltimore. The US Coast Guard (USGC), along with the Ports and Waterways Safety Board of Inquiry, will study 10 US ports to evaluate the risks of increased traffic and large commercial vessels on infrastructure like bridges, railways, pipelines, cargo terminals and power plants. A report on risk mitigation strategies and practices will be issued by the board and finalized by 31 May 2025. The study could help avoid accidents like the one in Baltimore that killed six and curtailed traffic in and out of the harbor since 26 March , effecting markets for metals, biofuels, coal, organic agriculture, petcoke and other products. The containership that struck the bridge was removed from the accident site on Monday, allowing commercial vessel traffic to resume . The port is expected to fully reopen by the end of May. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Containership moved from Baltimore bridge site: Update
Containership moved from Baltimore bridge site: Update
Includes information on resumption of all vessel traffic. New York, 20 May (Argus) — Deep-draft commercial vessels can resume movement in and out of the Port of Baltimore following today's removal of the containership that collided with the Francis Scott Key Bridge in March, according to officials. The 116,851dwt Dali had been pinned under the wreckage of the bridge since 26 March, when it lost power and hit the span, sending it into the water. Earlier this month the sections of bridge still on the ship were removed and on Monday the ship was refloated and relocated. With the Dali relocated all movements by deep-draft vessels that would normally travel to and from the port could resume, according to the federal Unified Command overseeing the response. Remnants of the bridge still need to be removed from the seabed before the commercial channel is restored to its full width. The bridge collapse blocked traffic in and out of the Port of Baltimore, which is a major coal export and automobile import terminal. Several small, shallower channels had been open to allow some vessel traffic, but not the largest ships that normally make call in Baltimore. The US Army Corps of Engineers is seeking to have the main channel, with a depth of 15.24m (50 feet), fully reopened by the end of May. By Gabriel Squitieri Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Containership moved from Baltimore bridge crash site
Containership moved from Baltimore bridge crash site
New York, 20 May (Argus) — The containership that collided with the Francis Scott Key Bridge in Baltimore, Maryland, in March has been moved from the accident scene to a nearby marine terminal. The 116,851dwt Dali had been pinned under the wreckage of the bridge since 26 March, when it lost power and hit the span, sending it into the water. Earlier this month the sections of bridge still on the ship were removed and on Monday the ship was refloated and relocated. The bridge collapse blocked traffic in and out of the Port of Baltimore, which is a major coal export and automobile import terminal. Several small, shallower channels had been open to allow some vessel traffic, but not the largest ships that normally make call in Baltimore. The US Army Corps of Engineers is seeking to have the main channel, with a depth of 15.24m (50 feet), reopened by the end of May. By Gabriel Squitieri Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Roy Hill's WA iron ore loadings support WA exports
Roy Hill's WA iron ore loadings support WA exports
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