The freight for delivering fuel oil from Northeast China to southern China pulled back because of less shipping demand after a slight rise in July, ship owners said.
The freight for a 3,000-DWT fuel oil tanker from Northeast China's Dalian port to Huangpu port in South China were Yuan 155-165/mt in early August, down by Yuan 35/mt from late July. Meantime, the freight from Dalian to East China’s Zhoushan port fell by Yuan 40/mt to Yuan 80-90/mt.
Shipping demand declined as traders were reluctant to stock up fuel oil amid plunging international crude prices, the ship owners said.
"Many tankers are idling in ports because shipping demand was affected obviously by bearish crude," said one of the ship owners.
The typhoon Muifa, which swept East China, Shandong and the Bohai Bay last week, also curbed fuel oil transport, according to the ship owners.
The freight is expected to fall further in the short term but in a slow pace, because it has nearly bottomed out and East China-traders will replenish stocks soon, market sources predicted.
