Braskem Trading & Shipping Launches Naphtha Vessel Operations at Port of Aratu

Braskem marked the arrival of the Beautiful Future at the Port of Aratu in Bahia on August 12, launching Brazilian operations of the first next-generation naphtha vessel run by Braskem Trading & Shipping. The LR1 vessel can carry up to 89,500 cubic meters of naphtha per voyage on the U.S. Gulf Coast to Brazil route and is rated IMO Type 3. Once the four planned naphtha vessels are in service, they are expected to carry roughly 40% to 50% of Braskem's naphtha import demand.

Key facts

Market context

Naphtha is a light petroleum fraction used mainly as feedstock for steam crackers, which produce ethylene, propylene and other olefins that feed plastics, synthetic rubber and chemical intermediates. Demand for naphtha therefore tracks the petrochemical cycle, with packaging, construction, automotive and consumer goods serving as the main downstream end markets. Because crackers in Brazil and much of Latin America rely on imported naphtha, ocean freight, vessel availability and delivered cost are significant factors in feedstock economics. Owning or controlling shipping capacity can reduce exposure to spot charter rates and tight tanker markets, while giving an integrated producer more scheduling flexibility. Naphtha moves from U.S. Gulf Coast export terminals to Brazilian ports in mid-sized product tankers, and the vessel class and safety rating determine which cargoes and terminals a ship can serve. Changes in naphtha import logistics can therefore influence regional feedstock availability and the pricing benchmarks buyers reference.

Source: official release on braskem.com.br. Summary and context written by Market Krystal.