Trans-Atlantic freight rates continue upward trend
Spot freight rates for moving 37,000 mt cargoes from Northwest Europe to the US Atlantic Coast have risen by almost 50 Worldscale points since last week as tonnage is shrinking fast with more gasoline moving to the US, shipping sources said Wednesday, Platts reports.
Worldscale rates for 37,000 mt cargoes on this route were assessed at w175 on Tuesday, a jump of 47 Worldscale points from the September 20 last week, when rates were assessed at w128, according to Platts data.
The last time prices were this high was on June 26 this year when the rate was seen at w180.
Freight rates on this route ranged between Worldscale 125 and 135 in the first two and half week of September two weeks as rates reached a near seven-month low of w125 on September 13.
However, sources said rates were seen at Worldscale 180 on Wednesday morning as two vessels were heard fixed on subjects at these levels.
"We were at w175 yesterday and w180 today, and it looks like it will go higher. We are looking at a tighter list in terms of tonnage. There are more cargoes than vessels right now, so rates will need to go up," said a shipowner.
Tonnage is falling fast and more and more cargoes are arriving on the market despite a closed arbitrage as US gasoline demand is very strong amid a spate of refinery shutdowns in the US.
At least six vessels on this route were put on subjects between w170 and w175 in the last two days, and rates for most routes out of Europe and the Mediterranean are also stronger as sentiment remains firm in the region.
The Freja Fionia was heard fixed on subjects at w175 for early-October loading dates for trans-Atlantic routes.
"I would say we are closer to w180. Rates are rallying everyday. The arbitrage to send gasoline from Europe to the US is still closed but many European refiners accumulated product so they have to travel to the US now," said a charterer.
"It is w180 today, there have been a couple of fixtures on subjects today at those levels," said a shipowner.
Worldscale rates for 37,000 mt cargoes on this route were assessed at w175 on Tuesday, a jump of 47 Worldscale points from the September 20 last week, when rates were assessed at w128, according to Platts data.
The last time prices were this high was on June 26 this year when the rate was seen at w180.
Freight rates on this route ranged between Worldscale 125 and 135 in the first two and half week of September two weeks as rates reached a near seven-month low of w125 on September 13.
However, sources said rates were seen at Worldscale 180 on Wednesday morning as two vessels were heard fixed on subjects at these levels.
"We were at w175 yesterday and w180 today, and it looks like it will go higher. We are looking at a tighter list in terms of tonnage. There are more cargoes than vessels right now, so rates will need to go up," said a shipowner.
Tonnage is falling fast and more and more cargoes are arriving on the market despite a closed arbitrage as US gasoline demand is very strong amid a spate of refinery shutdowns in the US.
At least six vessels on this route were put on subjects between w170 and w175 in the last two days, and rates for most routes out of Europe and the Mediterranean are also stronger as sentiment remains firm in the region.
The Freja Fionia was heard fixed on subjects at w175 for early-October loading dates for trans-Atlantic routes.
"I would say we are closer to w180. Rates are rallying everyday. The arbitrage to send gasoline from Europe to the US is still closed but many European refiners accumulated product so they have to travel to the US now," said a charterer.
"It is w180 today, there have been a couple of fixtures on subjects today at those levels," said a shipowner.