SHIPPING: USG-Asia liquid chem tanker rates plunge on ample space availability after Beryl

HOUSTON (ICIS)–Liquid chemical tanker rates from the US Gulf to Asia are plunging this week as plant shutdowns and delays in the aftermath of Hurricane Beryl have led to “gaping large holes of space”, shipping brokers said on Wednesday.

Hurricane Beryl made landfall in Texas on 8 July between Corpus Christi and Houston, which is a key region for US petrochemical production.

Some plants took precautionary measures and shut down ahead of the storm, while others sustained damage or lost power or other utilities to their sites, leading to shutdowns and force majeures.

A shipping broker said the outages and delays left shipowners without contract cargoes that are typically the base volumes for vessels.

“As a result, there are gaping large holes of space available for prompt loading,” a broker said.

The broker expects the trend to continue for the next week or two.

A different broker said it is seeing part cargo space for the rest of this month and into August across MOL and Odfjell vessels.

Rates have also softened this week along the USG-Brazil trade lane as some partial space has opened.

Beryl has led to a “wait and see” sentiment for players on this trade lane, a broker said.

PANAMA CANAL
A broker said that Stolt has joined MOL and Odfjell in resuming transits through the Panama Canal.

Restrictions have gradually eased at the canal after the Panama Canal Authority (PCA) began limiting transits in July of last year because of low water levels at the freshwater lake that feeds the locks because of an ongoing drought.

Water levels have improved because of the onset of the rainy season and conservation efforts enacted by the PCA to better use the freshwater available to them.

The PCA will limit transits on 3-4 August for planned maintenance at the Miraflores locks.

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Visit the ICIS Hurricane Beryl topic page.

Thumbnail image shows a container ship moving through the Panama Canal. Photo courtesy of the PCA.