A drop in trade in the global petrochemical markets has forced some deep-sea shipping route costs to be reduced by as much as 25%, an aromatics trader said Friday afternoon. The trader said: "There are not enough cargoes (on the water) and freight rates are down by 25%." The trader added that the average freight rate for Rotterdam to Southeast Asia would now be around $60/mt compared to $80/mt earlier in the year. Logistics sources agreed with this view. One logistics provider said, "between the US Gulf Coast and the Far East, its a case of 'pick a number'."
"Rates have also softened on other deep-sea routes. The Far East to Continental Europe is down by maybe 10%, although owners are still doing their best to hold firm," the source added.
"A Far East main port to Continental Europe would be about $130/mt."
A second source added: "Owners are still trying to keep rates up, but on some routes rates are down as there are not many inquiries at the moment."
"Rates have also softened on other deep-sea routes. The Far East to Continental Europe is down by maybe 10%, although owners are still doing their best to hold firm," the source added.
"A Far East main port to Continental Europe would be about $130/mt."
A second source added: "Owners are still trying to keep rates up, but on some routes rates are down as there are not many inquiries at the moment."