Freight rates for chemical tankers headed to ports in Japan affected by radiation woes have stayed relatively steady despite concerns, say ship brokers."So far no premiums yet, because there are still plenty of ships in Southeast Asia positioned to go north," said a shipbroking source, who added that moving a 5,000 mt cargo along this route would still cost around $33/mt, Platts reports.
However, freight rates from South Korea to Japan have increased $1-2/mt since the quake to around $25/mt for a 5,000 mt cargo. This is due to an increased amount of Korean petrochemical products headed to its neighbour, rather than radiation worries.
Still, another brokerage noted that more ships are starting to be open in Northeast Asia, putting pressure on southbound freight rates. Some ships have even turned to ballasting away from the region. According to a Chinese port agent, ports in China, especially South China, will carry out radiation inspections before vessel arrival. The ports include Xiamen, which recently turned away container ship MOL Presence after it passed by Fukushima where the quake-stricken nuclear power plant is. The vessel was found to have high radiation levels. However, Chinese petrochemical traders said they did not notice any major impact from the checks, and business has been as usual.
"Few people worry about it," said a Chinese source, who added that concerns over whether a ship has berthed at Japan before are close to none.
Apart from Xiamen, Guangzhou will inspect vessels which have called at any of Japan's ports following the earthquake. Shenzhen and Zhuhai will also "carry out radiation inspection", although details are unclear. Other ports like Hong Kong, Shanghai, Taicang, Ningbo, Zhangjiagang, Nanjing and Tianjin are not affected.
However, freight rates from South Korea to Japan have increased $1-2/mt since the quake to around $25/mt for a 5,000 mt cargo. This is due to an increased amount of Korean petrochemical products headed to its neighbour, rather than radiation worries.
Still, another brokerage noted that more ships are starting to be open in Northeast Asia, putting pressure on southbound freight rates. Some ships have even turned to ballasting away from the region. According to a Chinese port agent, ports in China, especially South China, will carry out radiation inspections before vessel arrival. The ports include Xiamen, which recently turned away container ship MOL Presence after it passed by Fukushima where the quake-stricken nuclear power plant is. The vessel was found to have high radiation levels. However, Chinese petrochemical traders said they did not notice any major impact from the checks, and business has been as usual.
"Few people worry about it," said a Chinese source, who added that concerns over whether a ship has berthed at Japan before are close to none.
Apart from Xiamen, Guangzhou will inspect vessels which have called at any of Japan's ports following the earthquake. Shenzhen and Zhuhai will also "carry out radiation inspection", although details are unclear. Other ports like Hong Kong, Shanghai, Taicang, Ningbo, Zhangjiagang, Nanjing and Tianjin are not affected.