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Freights rise on war risk, pressure coke fob

  • : Freight, Petroleum coke
  • 25/06/18

Rising dry bulk freight rates driven by concerns around Israel's attacks on Iran are weighing on fob US Gulf prices for petroleum coke and boosting cfr prices, despite overall weak demand.

"Freight [rates] are extremely strong, and this is putting heavy pressure on the fob prices," one trader said. "Freights for the next weeks are crazy."

"You have almost a 10pc jump up in freights in the last three trading days," another trader said, as the freight market reacted to Israeli strikes against Iran that began on 13 June, sparking concerns over Middle East oil supply and the possibility of an additional war risk premium on marine insurance. Bunker prices in Fujairah, UAE, the world's third-largest marine fuels hub, have surged.

Supramax freight rates from the US Gulf to India, one of the most common routes for petroleum coke, increased by $4-$5/t since last Thursday, while other shorter key routes, like the US Gulf to Turkey, have risen by $2-$3/t, according to multiple coke market participants. The Argus Supramax freight rate from the US Gulf to west coast India rose to $41.45/t on 16 June, up from $38.10/t on 12 June, while the US Gulf to Turkey rate jumped to $27/t from $24.05/t.

Freight rates were already rising prior to the start of the conflict. "A month ago, there were a ton of ships in the Gulf, but a lot of those ships have been repositioned," a third trader said. "Vessel supply is not as healthy as it was a month or two ago."

The additional concerns around marine insurance and higher bunkers are contributing to a "sugar high" among vessel owners, pushing them to raise offer levels as they feel confident in their positions for the time being, the third trader said.

The increase has resulted in a jump in offer prices for US Gulf coke in India, and some deals have been heard done at significantly higher levels than in the latter half of last week. US Gulf coke sales were heard in the $106-$107/t range on a cfr west coast India basis in recent days, up from deals in the $100-$103/t range prior to 13 June. But many traders said these higher levels are not necessarily repeatable, as most large Indian buyers have not raised bids from the low-$100s/t. It is unlikely that Indian buyers will absorb the full increase in freight rates, since many are already adequately covered with fuel inventory, and coal prices are increasingly competitive. This means that sellers will need to lower expectations on an fob US Gulf basis to keep trade flowing.

Traders will likely absorb much of the fob price impact, as they are holding most prompt cargoes at the moment. US Gulf high-sulphur supply is fairly tight, which is providing support to fob levels.

"The thing is, if you call the refiners and ask for something, either they're not going to have it or it'll be higher" than Argus' last assessment on 11 June of $68/t for US 6.5pc sulphur fob US Gulf coke, the third trader said. "But nothing is netting back to $68 in any market right now when you take the freights into account."

High-sulphur supply from Saudi Arabia was also already tight, and the tensions in the region could further disrupt shipments, especially from the Saudi Aramco-TotalEnergies Satorp joint venture 460,000 b/d Jubail refinery, located across from Iran on the country's eastern coast. Shipments from this refinery must move through the strait of Hormuz, a narrow waterway between Iran and the UAE, which some worry Iran could potentially block. Vessel owners are already looking to avoid traveling to this region.


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25/07/03

Japanese firms advance LCO2/methanol carrier project

Japanese firms advance LCO2/methanol carrier project

Tokyo, 3 July (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) and shipbuilder Mitsubishi Shipbuilding have made progress in developing an ocean-going liquified CO2 (LCO2) and methanol carrier, which would play a key role in establishing the country's carbon capture, utilisation and storage (CCUS) value chains. Mol and Mitsubishi have obtained approval in-principle (AiP) from Japanese classification society Class NK for their design concept of a LCO2/methanol carrier. The vessel would ship CO2 out of Japan and deliver CO2-based synthetic methanol (e-methanol) on return voyages to the resource-poor country, the companies announced on 30 June. The AiP certifies that the basic design of the vessel meets international regulation standards, such as technical requirements, as well as relevant safety restrictions covering the transportation of dangerous chemicals and liquefied gases in bulk. This is the world's first issuance of an AiP for a LCO2/methanol carrier, Class NK said. The approval is a major step forward for the companies, which hope to develop the vessel for commercialisation. The target date for its commissioning is still unclear. Mol expects the carrier to help meet Japan's growing demand for CO2 exports and e-methane imports with higher transport efficiency, unlike the use of a dedicated vessel for CO2 or methanol, which results in empty-cargo operation on half of the trips. E-methanol can be produced using CO2 and renewable hydrogen, which will contribute to decarbonising a variety of industries including the maritime shipping sector. Mol has previously invested in US synthetic fuel (e-fuel) producer HIF Global, while working with Japanese refiner Idemitsu and HIF subsidiaries HIF USA and HIF Asia Pacific to develop supply chains for synthetic fuel and e-methanol as well as CO2. HIF plans to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay by using green hydrogen and CO2, Mol has said. CCUS value chains would help fossil fuel-reliant Japan reduce its greenhouse gas (GHG) emissions by 60pc by the April 2035 to March 2036 fiscal year and by 73pc by 2040-41, against 2013-14 levels, before achieving the net-zero emissions by 2050. The Mol group, for its part, aims to reduce emissions intensity in transportation by 45pc against 2019 levels by 2035, as it works towards overall net-zero emissions by 2050. Japan's GHG emissions totalled 1.017bn t of CO2 in 2023-24 , down by 4.2pc from a year earlier to the lowest in 34 years, according to the country's environment ministry. This also reflected a 27pc decline against a 2013-14 baseline. By Japan Newsdesk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s BHP charters ammonia-fuelled carriers


25/07/02
25/07/02

Australia’s BHP charters ammonia-fuelled carriers

Sydney, 2 July (Argus) — Australian miner BHP and China's largest shipping company Cosco have signed a deal to charter two ammonia dual-fuelled Newcastlemax bulk carriers, expected to be delivered in 2028, BHP announced today. The vessels will be used as part of BHP's 255mn-265.5mn t/yr iron ore trade on shipments between Western Australia (WA) and northeast Asia, the miner said on 2 July. Ammonia-fuelled transport will cut greenhouse gas (GHG) emissions by 50-95pc per voyage compared with traditional bunker oil, BHP said. BHP will continue to work on an ammonia bunkering plan in WA ahead of delivery, it said. Several companies are eyeing blue and green hydrogen opportunities in the Pilbara iron ore mining region to meet expected maritime demand. Cosco in January ordered eight Newcastlemax bulk carriers with methanol- and ammonia-ready class notation, allowing for bunkering using either fuel once an engine is selected. The Pilbara region's proximity to offshore gas fields and local port authority Pilbara Ports' status as the world's largest bulk operator has led firms including blue ammonia developer NH3 Clean Energy to plan bunkering facilities in WA. Norwegian firm Yara, which operates the 800,000 t/yr Pilbara ammonia plant, is exploring carbon capture and storage deals to cut its GHG emissions, while jointly developing a 10MW, 640 t/yr green hydrogen facility at the site due to come on line in late 2025 . Danish investment fund CIP's Murchison Green Hydrogen project was awarded A$814mn ($535mn) in federal government production credits in March for a proposed green ammonia export facility expected to commence operations in WA's Mid West region in 2032. Ammonia bunkering on the WA-China iron ore corridor could meet up to 5pc of total shipments annually by 2030 , but this would require 23 vessels operating around 70 Newcastlemax voyages by 2028, according to a 2023 Global Maritime Forum feasibility study. Fellow member of the "big four" iron ore producers in Pilbara Australian miner Fortescue signed an initial agreement with Cosco in 2024 for green ammonia-powered vessels . It signed a chartering agreement with shipowner Bocimar in April 2025 for an ammonia-fuelled carrier to be delivered by late 2026. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mideast Gulf VLCC rates halve as ceasefire holds


25/06/27
25/06/27

Mideast Gulf VLCC rates halve as ceasefire holds

London, 27 June (Argus) — VLCC freight rates on key routes have fallen sharply since a ceasefire between Israel and Iran was announced on 24 June, with the Mideast Gulf to China route dropping 50pc in just three days. Rates on the Mideast Gulf to China route — a bellwether for the VLCC market — surged to a 2.5-year high of WS110 ($25.70/t) on 23 June, following US strikes on three nuclear facilities in Iran the previous day. Charterers remained active during the spike, securing vessels at elevated levels. Kuwait's KPC booked two ships for Asia-Pacific delivery — one at WS110 and another at WS120 — but both deals failed to hold after the ceasefire was announced. Since then, rates on the route have fallen by at least WS10 ($3.50/t) a day, settling at WS55 ($12.85/t) on 26 June. The pace of decline may slow as rates approach pre-conflict levels. With no direct impact on crude supply or infrastructure, freight rates are likely to revert to previous market levels. A similar pattern emerged in October last year, when Iran launched more than 200 missiles at Israel. Rates on the same route rose by over 13pc to $14.10/t within three days, according to Argus assessments, before easing back to just above pre-conflict levels as tensions subsided. Before the latest escalation, the Mideast Gulf to China route was nearing a year-to-date low, weighed down by weaker Chinese crude demand during refinery maintenance season. Higher official formula prices for Saudi crude also curbed buying interest, prompting Chinese refiners to turn to Latin American alternatives — freeing up tonnage in the Mideast Gulf. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pacific Basin, Towngas agree green methanol deal


25/06/26
25/06/26

Pacific Basin, Towngas agree green methanol deal

Singapore, 26 June (Argus) — Hong Kong-based dry shipping firm Pacific Basin Shipping signed an initial agreement with local utility Towngas on 25 June to enhance its access to green methanol marine fuel supplies. Pacific Basin Shipping foresees green methanol playing a growing role in its fuel strategy as the company expands its fleet of low-emission, dual-fuel vessels and works to decarbonise its operations. This is in line with tightening maritime regulations aimed at gradually lowering the greenhouse gas intensity of marine fuels. The agreement outlines a framework for Towngas to supply Pacific Basin Shipping with green methanol certified under ISCC EU, ISCC PLUS or other international standards, supporting compliance with maritime decarbonisation rules. The partnership with Towngas is a key step towards securing access to green fuels needed to meet upcoming FuelEU Maritime and the International Maritime Organization's Fuel Standard, said Pacific Basin chief executive Martin Fruergaard. He highlighted green methanol's role in powering the company's low-emission, dual-fuel vessels, which could switch between fuel types based on cost and regulation. The deal also supports its goal of having green fuels make up 5pc of its fuel mix by 2030 and reaching net zero emissions by 2050. The agreement with Pacific Basin marks a significant milestone in Towngas' decarbonisation efforts and support for cleaner shipping fuels for the global shipping industry, said the utility's managing director Peter Wong. Pacific Basin Shipping operates and owns modern Handysize, Supramax and Ultramax dry bulk vessels. The company manages a fleet of more than 260 dry bulk vessels, including 108 owned vessels and the rest on charter. Its fleet expansion plans include four low-emission, dual-fuel Ultramax ships currently under construction in Japan, with delivery set for 2028 and 2029. By Lisa Cheng Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mideast Gulf VLCC rates drop 20pc as ceasefire holds


25/06/25
25/06/25

Mideast Gulf VLCC rates drop 20pc as ceasefire holds

London, 25 June (Argus) — VLCC freight rates from the Mideast Gulf to China fell by 20pc on 24 June as a ceasefire between Israel and Iran appeared to hold, easing geopolitical tensions and raising the prospect of further declines. Market participants said rates could fall quickly in the coming days if the ceasefire continues, and suggested that shipowners are likely to rush back to secure cargoes before rates drop further. The bellwether Mideast Gulf–China VLCC rate dropped to WS87.5 ($20.44/t) on Tuesday, down from a 2.5-year high of WS110 ($25/t) the previous day. Fixtures agreed at the peak of the market failed to hold. Kuwait's state-owned KPC had two bookings — one at WS110 and another at WS120 — fall through on Tuesday. Monday's rate surge prompted some shipowners to hold back from fixing in hopes of even higher returns. Those owners may now return to the market to secure cargoes before rates fall further, adding to the downward pressure, market participants said. Rates could return to pre-conflict levels if the ceasefire holds. Before tensions escalated on 13 June, the Mideast Gulf–China route had fallen to near year-to-date lows as Chinese crude demand weakened during refinery maintenance season. Higher official formula prices for Saudi crude exports also curbed demand from Chinese buyers, who turned to alternative suppliers in Latin America. In a similar pattern in October last year, when Iran launched more than 200 missiles at Israel, the Mideast Gulf–China rate rose by over 13pc to $14.10/t in three days, according to Argus assessments. Rates eased back to just above pre-conflict levels after that round of hostilities de-escalated. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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