In International Shipping News 10/06/2015
Freight rates for chemical tankers in the Middle East market have gone up sharply in the last two weeks amid strong demand to move chemical products ahead of Ramadan period and tight tonnage availability, according to market sources.
The Muslim fasting month of Ramadan is expected to start in the later half of June based on the sighting of the moon and ends on Eid ul Fitr holidays across Muslim countries.
Owners had limited space available for June loading cargoes as firm contract of affreightment (COA) business, coupled with an active clean petroleum (CPP) market, had filled vessel spaces.
Several ships were unable to make the laycans of their subsequent voyages as they were facing delays of five to fifteen days at some West Coast Indian (WCI) ports because of terminal congestions.
The long waiting time for ships to load and discharge in Jubail, of up to twenty-one days, had squeezed tonnage in the already tight tanker market.
Subsequently, charterers re-entered the spot market seeking replacement vessels for these cargoes and were paying higher freight rates because of the limited June tonnage.
These charterers were looking to load their cargoes ahead of the traditional slowdown at Middle Eastern ports brought on by Ramadan and the Eid al-Fitr festivities.
Traditionally, most ship owners and charterers face a lag in shipment and clearance procedures at the port terminals and plants in the Middle East during the Ramadan period as working hours of federal and state ministries, customs and other government institutions are reduced.
As a result, most charterers were keen to fix their cargoes ahead of Ramadan to avoid possible delays in loading and delivery of cargoes.
