Freight rates for medium-range vessels carrying clean products in the US Gulf Coast and Caribbean markets have hit year-to-date lows on an oversupply of tonnage, regional shipping sources said Tuesday.
"The US Gulf Coast market is grossly oversupplied and the tanker market is very depressed," one ship broker said.
Rates from the US Gulf Coast to San Vicente, the southernmost range in Chile, is being quoted at $1.2 million to $1.25 million; the same route is usually quoted at about $1.35 million to $1.6 million.
"It's awful at the moment," said a second ship broker.
Shell is currently quoting a clean petroleum product cargo for a May 6-8 loading date from the US Gulf Coast to either Chile, Peru, Brazil, Argentina, United Kingdom, or the Mediterranean, sources said.
"We understand they've gotten 10 offers so far," a third ship broker said. "We should take for granted that competition will be fierce."
Source: Luciano Battistini, Platts