USGC-NWE clean freight rates back at year-high on export demand

Freight rates for clean tankers on the US Gulf Coast to Northwest Europe route have risen back to their 2013 high at Worldscale 155, basis 38,000 mt, on continued export demand, shipping sources said Friday.

USGC-NWE rates last reached w155 on October 2.

"The USGC tonnage list out through natural fixing dates is healthy with more vessels expected to ballast in towards the end of the month. But, in the short term, prompt replacements should continue to drive the market higher," a US-based industry source said.

According to a shipowner, there are still three or four uncovered cargoes for prompt loading in the US Gulf Coast. The fact more ships will be coming in the second half of November is "putting a bit of brake on the rates".

"When freight rates reach a record high, charterers prefer to wait than fixing a ship at very high rate. That is, when they have the choice," a shipbroker said.
Source: Platts