Base Chemicals News

Chemical shipping freight rates will weaken through 2018 due to the depressed outlook on overtonnaged long haul routes, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry. The global chemical trade grew by a little over 4% in 2017, while overall tonne-mile demand expanded by almost 5%. Despite continuing global economic growth, Drewry expects seaborne chemical trade to grow by 2.5% in 2018 and tonne-mile demand by 1.6%, reflecting a slowdown in long-haul trip growth. Increasing self-sufficiency in base chemicals in Asian countries is a definite threat to long-haul trades. The global chemical capable fleet increased by 3.9% in tonnage terms in 2017.

Navigator Holdings Ltd. announced today that it has signed a long term shipping agreement for one of its 35,000 cubic meter ethylene/ethane capable semi-refrigerated liquefied gas carriers, currently being built at Jiangnan Shipyard, China. The ten year time charter has been agreed with Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. The charter, which is planned to commence in late 2016, will transport ethane from the Marcus Hook terminal operated by Sunoco Logistics to Borealis’ cracker in Stenungsund, Sweden.

In 2005, 369 million tonnes of cargo passed through the port of Rotterdam, almost 5% more than in 2004 and a new record. The volume of cargo leaving the port grew faster than that of cargo coming in, with 9% and 3% respectively, with general cargo enjoying 7% growth – almost twice the growth of bulk cargo. Ores and scrap metals (-5%), crude oil (-1%) roll on /roll off (-9%) and other general cargo (-3%) arrived and left in smaller volumes. However, handling of agri-bulk (+1%), coal (+7%), other dry bulk (+4%), other wet bulk (+4%), mineral oil products (+27%) and containers (+10%) showed very positive figures. In numbers, container movements increased by more than 12% to 9.3 million TEU (container units of 20 feet).