Sulphur prices
Freight market summary Fertilizer freight rates slipped this week as charterers and owners returned to the market in full force after the recent holidays and found that a surplus of available vessels had built gradually over the last two weeks.
Europe to Asian Supramax cargoes were priced around $17,000/day while US Gulf to India cargoes were reportedly booked at $26,000/d.
The Asian market was relatively brisk compared to the Atlantic but there few other fertilizer cargoes under discussion.
In the fertilizer market, Oldendorff picked up the 81,650 dwt Ormos from the north Pacific to India at $13,000/d for prompt loading.
Supramax ships burn 33tonnes/d of fuel oil and the fuel price movement will drive the cost up by $1,443.75/d.
But a continuing rise in fuel prices could halt any decline in $/t freight rates as shipowners margins will be squeezed by both rising fuel costs and falling freight prices.
Suppliers are expressing no hurry to sell and have rejected bids in the mid/ high-$120s/t cfr and lower, preferring to warehouse available tonnages until demand returns and prices recover.
Sales of granular sulphur have been confirmed in the verylow-$140s/t cfr north River, and very-high-$130s/t cfr south China, marking a further softening in prices on the week.
Cargoes between Europe and the Mediterranean were booked around $16,000/d for coal cargoes.
When accompanied by a $2,000/d fall in the freight rate, owners’ margins will be squeezed by nearly $4,000/d, which could lead to a stiffening of resistance to lower spot market levels.
