On account of the impossibility for OPEC to increase production in a short-term plus the coming of the fastigium of Oil consumption in Summer, base oil futures increases sharply and gain upon to USD130. Till May.21st, the base oil futures immediate contract of NY Business Bourse rises to USD129.58/pail at tiptop.
Base oil price climbs to the peak, the ship freight is towering as well. International freight just like to take the scenic railway, falls off from the perch at the beginning of this year and now comes back to perch, moreover the historical highest one.
The base oil price continues to create new higher ones, the globally huge demand of staple cargoes like foodstuff, coal etc makes the international freight deploy the strong rising trend since this Feburary. The BDI index (Baltic Sea dry bulk cargo index) which reflects the international sea freight of various main raw materials comes to 11459 points in the third week of May, creates the historical new highest, which continues climbing to 11793 pionts in the fourth week.
According to the data report, BDI touches the annual lowest 5615 points this Jan.29th, and the rise range reaches 108% in the following 3 months .
The market expert indicates that the price rise of base oil is the one of the main factors to drive the increase of international sea freight carriage.
Since this Feburary, international oil price increases from USD85/pail to USD130/pail round, Singapore 180CST high class sulfur oil price even increases from USD440/ton to current USD607/ton. The rise of oil price makes sea freight cost augment therefore drive the increase of sea freight carriage.
Furthermore, due to the huge demand of large amount products including coal, foodstuff and iron ore, enhance the global demand for sea freight and also be the importatnt reason that international sea freight carriage climbs to higher one in a big range.
The rapidly rise of international sea freight carriage supports large amount commodities maintain its higher price and boost the price increase for part of commodities just like adding fuel to the fire.
Some expert indicates, give an example like soybean, if China enterprise imports soybean from U.S.A yesterday, the FOB cost to HongKong is around USD 5400/ton, among which sea freight carriage is about USD 1400/ton, so the carriage occupies 1/4 of the total cost. "These days, domestic soybean futures price trend is stronger than U.S.A soybean futures price, the incease of sea freight carriage is the main factor which results in the different trend appear" this expert says.
Source :First Financial Daily