The last two weeks have brought little in the way of change to Specialised Products markets. Perhaps the only area of interest has been the deep sea transpacific route to the US. A significant jump in activity has led to a firming in rates as space begins to be snapped up. In turn we see, a 3.5% rise in key benchmark rates over the last two weeks. This is a considerable change particularly as the ex-Asia market has been rather sluggish to say the least over the past month. The big news for chemical market owners came on Friday 7June with the announcement of the Jo Tankers and Tokyo Marine pool agreement
operating under the name of Milestone Chemical Tankers. Turning to the Edible Oils market – we see a slight increase in palm oils requirements into West Coast India ahead of Ramadan however, this has been handled by the high number of prompt intermediate vessels on berth or due to open in the next three weeks so freight levels, if they move at all, could soften. In addition, the CPP market remains volatile with the continent to US Atlantic Coast maintaining a soft trend. Consequently many ‘MR’ owners would be reluctant to jump on trades from the Middle East Gulf to Europe, for molasses or CPP, or jump on any veg oils from Argentina to India after a CPP discharge unless freight values, especially for palms, increase. We also suggest that the molasses season is running towards a seasonal slowdown as it is the end of the crop year so most traders have covered their short term positions thus leaving little opportunity for tonnage currently on berth.