Drewry: Chemical Tanker Rates to Stay Solid

Image Courtesy: Seatrans

Due to a rising production capacity in key exporting countries, chemical tanker shipping freight rates are expected to remain firm over the medium term, according to shipping consultancy Drewry.

Since 2015, the US has started to export more and import less volume of liquid chemical products. US methanol capacity surged 77% in 2015 with the addition of around 3.5 million tonnes per year of new capacity. As a result, US methanol exports are starting to change the pattern of the long-haul chemical shipping trade.

The volume of US exports to Northeast Asian and Europe rose 12% and 20%, respectively, in 2015, the shipping consultancy said, adding that the eastbound transatlantic freight rates in particular are expected to rise over the medium term.

Since sanctions on Iran have been lifted, many new projects in the Middle East are expected to come on stream from this year.

Exports from the region to Northwest Asia and Europe rose 5% and 23%, respectively, in 2015 and Drewry expects the pace of growth to continue over the next three years, boosting freight rates.

However, on the westbound transpacific route many large vessels have joined the trade as the second half of 2015 saw 38 more vessels on this route, 15 of which were of 30,000-40,000 dwt.

“We expect more large vessels to join the eastbound transpacific trade during 2016 and as a result we expect freight rates to weaken in the short term but to remain stable over the medium term,” said Hu Qing, Drewry’s Lead Analyst for Chemical Shipping.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >