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Clean European barge rates at 2014 highs on strong demand, water levels
Clean Northwest European barge rates are at year-to-date peaks on high liquidity in the Rotterdam ultra low sulfur diesel market and low Rhine water levels.
The clean Rotterdam-Flushing barge rate closed at $3.75/mt on Thursday ahead of the Easter holiday break, the highest level so far this year, while the Rotterdam-Rotterdam barge rate closed at $2.25/mt on Thursday, equal to its 2014 high seen at the beginning of March.
Traders attributed the recent rise in cross Amsterdam-Rotterdam-Antwerp routes to activity in the diesel barge market with trading house Vitol a particularly large buyer in the FOB ULSD barge market so far in April.
FOB markets require purchasers to lift a diesel cargo with a vessel. Recent spot demand for diesel has translated into increased spot demand for barges in ARA.
The total volume of ULSD traded so far this April in the Platts Market on Close assessment process is 430,000 mt, sharply higher than the volume traded in the whole of March.
Average Rhine water levels are also at their lowest this year, affecting transport of product in inland Germany according to barge operators and also leading to a rise in ARA to Germany clean barge rates.
"Rhine water levels are a nightmare. My 2,300 mt barges right now can only load 1,000 mt, I'm at 50% capacity at the moment," said one barge operator who also said that his smaller barges were now trading at a sharp premium.
Traders have historically said that typical 2,000-3,000 mt cargoes need to be loaded on two barges instead of one when water levels reach particularly low levels in order for vessels to meet draft restrictions in the Rhine.
The clean Rotterdam-Flushing barges rate closed at $25/mt on Thursday, its highest since November 1 last year, while the clean Rotterdam-Duisburg barge rate closed at $7.50/mt on Thursday for the second day in a row, another 2014 high.
Rhine water levels stood at 236 cm on Tuesday at nine key locations along the river. The locations surveyed are Duisburg, Dusseldorf, Cologne, Koblenz, Kaub, Mainz, Mannheim, Karlsruhe and Basel. This is the lowest since September 8, Platts data shows.
Source: Platts
The clean Rotterdam-Flushing barge rate closed at $3.75/mt on Thursday ahead of the Easter holiday break, the highest level so far this year, while the Rotterdam-Rotterdam barge rate closed at $2.25/mt on Thursday, equal to its 2014 high seen at the beginning of March.
Traders attributed the recent rise in cross Amsterdam-Rotterdam-Antwerp routes to activity in the diesel barge market with trading house Vitol a particularly large buyer in the FOB ULSD barge market so far in April.
FOB markets require purchasers to lift a diesel cargo with a vessel. Recent spot demand for diesel has translated into increased spot demand for barges in ARA.
The total volume of ULSD traded so far this April in the Platts Market on Close assessment process is 430,000 mt, sharply higher than the volume traded in the whole of March.
Average Rhine water levels are also at their lowest this year, affecting transport of product in inland Germany according to barge operators and also leading to a rise in ARA to Germany clean barge rates.
"Rhine water levels are a nightmare. My 2,300 mt barges right now can only load 1,000 mt, I'm at 50% capacity at the moment," said one barge operator who also said that his smaller barges were now trading at a sharp premium.
Traders have historically said that typical 2,000-3,000 mt cargoes need to be loaded on two barges instead of one when water levels reach particularly low levels in order for vessels to meet draft restrictions in the Rhine.
The clean Rotterdam-Flushing barges rate closed at $25/mt on Thursday, its highest since November 1 last year, while the clean Rotterdam-Duisburg barge rate closed at $7.50/mt on Thursday for the second day in a row, another 2014 high.
Rhine water levels stood at 236 cm on Tuesday at nine key locations along the river. The locations surveyed are Duisburg, Dusseldorf, Cologne, Koblenz, Kaub, Mainz, Mannheim, Karlsruhe and Basel. This is the lowest since September 8, Platts data shows.
Source: Platts
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