Freight rates for some Supramax bulkers carrying petroleum coke from the US Gulf coast pushed up by over 11pc this week as an uptick in demand in the north Atlantic has reduced available tonnage supply.
Supramax rates for petroleum coke voyages from the US Gulf coast to east coast India were at $48.80/metric tonne today, an 11pc rise from $43.85/t on 17 April. Rates for coke voyages from the US Gulf coast to Rotterdam are at $21.10/t today, up by 7.5pc from $19.60/t in the same period.
Asia-Pacific demand in particular for coal, grain, and petroleum coke cargoes early in the week helped to thin Supramax tonnage near the US east coast, US Gulf coast and north coast South American ports, fueling the push in rates as shipowners successfully secured higher $/d fixtures each day of the week.
Only 25 Supramax bulkers were available on the spot market for loading in these three regions on 18 April, according to shipbroker Lorentzen, noting that "the ship count is low, and sentiment is up."
North Atlantic Supramax freight rates can sometimes jump when there is a "vessel imbalance" leaving one side of the Atlantic with fewer available ships as demand from that region rises.
North Atlantic supply imbalances have been quickly corrected with ballasters from the European continent in the past, but the firming Supramax market in Europe could keep fewer shipowners from wanting to relocate their vessels in the short-term.
European Supramax tonnage is being "absorbed" by a "continuous output of orders", according to shipbroker BRS Group. "The sentiment is rather bullish at the moment."
