Freight rates on shipping routes in Asia were under pressure due to abundant tonnage space available, amid trades slowing down with the typhoon season in the region. Rates were stable to soft, with those from Korea to Chinas Ningbo, Tianjin and Zhuhai ports down US$1 a ton at the lower end of the previous week. Most enquiries were for prompt spaces for mid-August to early September loading, while interest in September was thin. Fixtures were few due to bad weather – which meant charters had to wait before committing. Bad weather caused by typhoons such as Ampil and Shanshan have disrupted several ports in China and Japan since late July.
In Europe shipping activity was slowing down with limited signs of picking up. Intra-European chemical tanker shipping activity was low due to the holidays, with talks of a possible pick-up in activity limited. Shipping activity within Europe was limited due to the absence of several players during the main holidays. However, there has been some slight pick-up in activity over the past week. Typical products were being shipped across the intra-European routes, with no major change this week. Freight rates in Europe appear to have stabilised for the time being. However, there was also talk of pulls in either direction in certain cases.
China’s hunger for petrochemical imports was waning on rising costs emerging from the continued depreciation of the yuan, while the consequent surge in domestic demand was fueling prices in the local markets. With the yuan losing more than 10% in the last four months to the US dollar, importers have turned to local supply, boosting domestic prices.
