Handy-size clean tanker freight rates on the Baltic to the Northwest Europe Continent, basis 30,000 mt, hit a fresh low for 2014 Monday on the suspension of ice class restrictions in the Baltic region, shipping and trading sources said Tuesday.
According to Platts data, freight rates on the Baltic-NWE route, basis 30,000 mt, fell $0.21/mt to $14.61/mt (Worldscale 167.50), reaching the lowest since December 9, 2013, when the rate was assessed at $14.47/mt.
Shipping sources pegged freight rates on the route at w160 ($13.9/mt) early on Tuesday.
"I see three to four Handy-size tankers on subjects at w160 level, so I am calling the rate at the same levels," a shipbroker said.
According to trading sources, the suspension of ice-class requirements out of the Baltic port of Ust-Luga will not necessarily boost naphtha exports out of the port, but will mainly alter the destination of naphtha to go east or west instead of remaining in Europe.
"It means more [naphtha] from Ust-Luga might go east instead of coming to ARA," said a naphtha trader.
But new fixtures from the Baltic to Asia were yet to be reported, while Gunvor was heard to have fixed the medium-range tanker Torm Thames to ship naphtha from Ust-Luga to New York Harbour. Gunvor declined to comment.
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