Platts: Atlantic Supramax Market Plagued by Overcapacity
The Atlantic Supramax market continued to deal with an oversupply of ships in all its key regions, with demand for cargo insufficient for the time being in helping freight rates recover, according to Platts.
On the US Gulf Coast, the number of open Supramax vessels remained high, with inquiry for front-haul and trans-Atlantic runs just enough to keep freight rates steady. The USGC-to-Asia grain route, basis 50,000 mt, was assessed flat on the day at USD 17,000/d. Also unchanged day on day was the USGC-to-Eastern Mediterranean petcoke route, basis 50,000 mt, at USD 12,500/d, Platts reports.
A shipbroking source told Platts that trading on the USGC Supramax market came in sharp contrast to the USGC Panamax market, which was more positive for owners.
But according to industry participants, the outlook for Supramaxes in the US Gulf might change for the better going forward. As the region is already overtonnaged, it ceased to be an attractive ballasting destination. So if inquiry levels stay consistent for Supramaxes, availability of tonnage would eventually tighten, Platts’ sources.
In the neighboring US East Coast market, Platts reports that freight rates continued to come off as demand for cargoes was not enough to absorb a number of extra ships opening up in the area.
The USEC-to-Eastern Mediterranean scrap metal route, basis 50,000 mt, was assessed at USD 14,000/d, down USD 1,000 from Monday.
Across the Atlantic, a few more Supramax vessels were set to open up on the UK-Continent within the next 10 days, but demand for cargo out of the area was limited, which put additional downward pressure on freight rates.
Platts reports that the Amsterdam-Rotterdam-Antwerp-to-Eastern Mediterranean scrap metal route, basis 50,000 mt, was assessed at USD 15,000/d, down USD 500 from Monday.
Source: Platts
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