18 Dec Logistics / Freight – Land & Sea
Overview: Fresh coal and mineral business is supporting the Atlantic Supramax market. Owners are bullish at these levels and prices are expected to be maintained (see freight table). Supramax rates the Pacific are softening with limited fresh activity and more vessels expected to come open in the coming week. Handysize market is positional and is supported mainly by US led demand. More grain enquiries are emerging in the Atlantic and Black Sea basins. Good grain exports from Russian grains out of the Black Sea and Baltic Sea. IFO380 bunker costs have increased from $342/t to $351/t this week. Brent oil prices are also up from a low of $61/bbl since the last issue to plus $63/bbl.
Outlook – Firm rates to continue in the Atlantic and North Sea basins. Bunker costs also pushing up rates.
Germany: The Elbe will see 130kms of the river dredged, which will raise the draft level from 13.50m to 14.50mt. The port of Hamburg will be able to accommodate bigger vessel containers.
Netherlands: Rotterdam port is increasing dues by 1% per year for the next three years. The Port Authority adopted these specific measures to strengthen Rotterdam’s position as a container hub. It will provide the market with clarity. In 2016, the Port Authority received EUR 295 million in sea port dues and EUR 14 million in inland port dues. Global oil and petchem logistics player Vopak is already seeing an early impact on bunker storage demand from 2020 due to tighter IMO rules on bunker sulphur limits.
Pakistan: Trafigura has confirmed plans to develop a second LNG import terminal project at Port Qasim, Pakistan. Pakistan Gas Port’s (PGPL) unveiled a new LNG floating storage and re-gasification import terminal at the site, which will be served by the 170,000 m3 FSRU BW Integrity. The new terminal will supply 90 million cubic feet of gas per day to private buyers in Pakistan.