Sydney (Platts)--14Mar2011/838 am EDT/1238 GMT
The cost of freight for dry bulk cargoes within the Asia Pacific region may soften marginally in the immediate aftermath of Japan's massive earthquake Friday and ensuing closure of a number of local ports, although rates may be expected to rebound in coming months as the nation rebuilds, shipping sources said Monday. The closure of various ports on Japan's northeastern coast would mean less in-bound shipping traffic, and the potential for softer freight rates within Asia, said a shipowner. But the executive and a second shipowner also said they thought the extent of impact on freight rates was not immediately unquantifiable. "It's hard to tell, although we do expect less business in Japan in the short term, with ports closed," one said. Ports in Tokyo Bay such as Chiba and Yokkaichi were open Monday although Kashima and Sendai were closed. Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more. Another ship operator said extensive damage caused by the quake was expected to boost freight rates in coming months, due to increased in-bound shipments of coal, steel and cement to Japan, for rebuilding activity. On Friday Platts assessed that it would have cost at least $28.25/mt to ship a 30,000 mt alumina cargo from Bunbury or Kwinana in Western Australia to Qingdao in northern China, for a laycan in the next 30 to 60 days.--Joanna Lim, joanna_lim@platts.com
The cost of freight for dry bulk cargoes within the Asia Pacific region may soften marginally in the immediate aftermath of Japan's massive earthquake Friday and ensuing closure of a number of local ports, although rates may be expected to rebound in coming months as the nation rebuilds, shipping sources said Monday. The closure of various ports on Japan's northeastern coast would mean less in-bound shipping traffic, and the potential for softer freight rates within Asia, said a shipowner. But the executive and a second shipowner also said they thought the extent of impact on freight rates was not immediately unquantifiable. "It's hard to tell, although we do expect less business in Japan in the short term, with ports closed," one said. Ports in Tokyo Bay such as Chiba and Yokkaichi were open Monday although Kashima and Sendai were closed.
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