The freight rates for delivering fuel oil from northern China to southern China rose in late September, thanks to the rise in shipping demand, according to shipping sources.
For 3,000-DWT oil tankers to move from Dalian in northeast China to Huangpu in south China, with fuel oil storage heated to around 60°C, the freight rates were at Yuan 200-210/mt in late September, up by Yuan 30/mt from early September. Meanwhile, the freight rates for the Dalian-Zhoushan route climbed by Yuan 20/mt to Yuan 130-140/mt.
More fuel oil has been shipped in the domestic market recently, as blenders in southern provinces purchased more slurry from northern provinces, said shipping sources.
In addition, large volumes of residue have been delivered from south China and east China to Shandong lately, because of stronger demand from Shandong independent refineries' cokers.
For 3,000-DWT oil tankers to move from Guangzhou to Zhoushan, the freight rates were at Yuan 160-180/mt in late September, and those for shipping bituminous feedstock from Guangdong to northern Shandong were at Yuan 280-290/mt. The freight rates for delivering fuel oil from Ningbo or Taizhou in East China to Shandong were at about Yuan 140-150/mt.
The freight rates are not likely to grow notably again in early October as fuel oil demand will probably be impacted by recent drops in international crude.
