EMEA News
Baltic Dry Bulk Routes Could See Higher Rates Due to Rotterdam MGO Discount
Rotterdam's marine gasoil bunker prices, coming at a discount to St Petersburg prices for the first time since January, has brought expectations for higher rates on Panamax coal routes from Russian ports into Amsterdam-Rotterdam-Antwerp (ARA), Platts reports.
The discount in Rotterdam, an average of $17.70 per metric tonne (pmt) from June 22 until July 14 according to Platts data, against St Petersburg is said to have made Rotterdam more competitive and pushed up voyage costs.
On Wednesday, Ship & Bunker data showed delivered MGO in Rotterdam was $498.00 pmt Tuesday, compared to St Petersburg MGO, which was priced at $527 pmt.
Freight rates on coal cargoes from Russian ports in the ARA region were said to be typically up to $1 pmt less than from other Baltic ports as operators can usually capitalise on cheaper Russian fuel.
"St Petersburg is not competitive [to Rotterdam] at the moment. St Petersburg [prices] would have to converge," one Russian supplier said.
Another supplier commenting on the situation said, "we are buying in fixed prices and the only exposure we have is in the ruble to dollar exchange."
On Wednesday, it was reported that container freight spot rates on the Asia-Europe route have resumed a predictable slide due to weak demand and over-capacity, falling 20 percent last week.
