Handysize tankers freight on the cross-Mediterranean route hit a six-month high amid weather delays and tight position list, shipping and trading sources said Thursday.
According to Platts data, freight rates on the cross-Med route, basis 30,000 mt, have risen by 12.5 Worldscale points over this week to be assessed at w157.5 ($7.86/mt) Wednesday. This is the highest since May 3 when the freight was at $9.23/mt.
“There are several factors impacting the freight rates: weather delays, five to six vessels on financial hold at Egypt due to currency issues, and ullage issues in [French port] Lavera. There are still cargoes left to be covered,” a shipbroker said.
Due to the lack of tonnage available, and as a result of delays in the Black Sea, diesel traders reported difficulties covering East Mediterranean shorts this week.
“Weather delays are over, at least for now… but the delayed impact is still there,” a trader said.
Going forward, sources said that healthy demand could absorb Black Sea volumes once delays are over.
Meanwhile, a trader, who was currently awaiting two vessels from the Black Sea, expects delays of up to one week. These weather-related disruptions have caused logistical issues between refineries and load ports, he explained.
Source: PlattsPrevious Next
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