Maritime freight rates to China fall by 30% to 50%
By the AFREEQUE newsroom, based on RFI
Illustrative image · Oleksiy · Pexels · Licence PexelsMaritime freight costs to China have fallen by 30% to 50%, making African oil competitive again among Asian buyers. The decline concerns in particular Suezmax and VLCC cargoes for December, January and February, according to RFI.
Oil freight costs on major maritime routes have fallen by 30% to 50%, after the sharp pressure seen in October, improving the competitiveness of African cargoes bound for China. The decline concerns in particular deliveries scheduled for December, January and February on Suezmax and VLCC vessels carrying 1 to 2 million barrels, reports RFI.
Several Asian buyers have resumed taking cargoes from sub-Saharan Africa, notably Unipec, the trading arm of Chinese refiner Sinopec, and South Korea’s SK Energy, with purchases in Gabon and Congo-Brazzaville. Angolan oil is also expected to benefit from the renewed interest, while rates are also falling on routes linking Latin America and the United States to China, according to RFI.
Charles Thiémélé, Africa director at oil and gas trading company BGN SA, explains that transport costs had pushed African producers in October to favour Europe and the United States. He believes that a drop of a few dollars per barrel quickly becomes significant given the volumes transported.
Asian refiners had reduced their crude purchases because of high freight costs, contributing to the fall in rates. They nevertheless remain at historically high levels, according to RFI.
