Small-tonnage owners face mounting pressure in Black Sea amid insufficient cargo offer

Trading activity remains limited in the Black Sea, with even more pressure from charterers. Ukrainian grain and some Russian cargoes are the only ones being more or less regularly shipped in the area. Shipowners try at least to keep freights steady.

Rates for shipments from Ukraine are pretty stable:

• 10,000 t of corn are carried from Odesa to EC Greece at $27/t, which reaches $6k daily in TCE bss RV in case of no AWRP required;
• Up to 8,500 t of soybeans are offered for transportation from POC to EC Greece at $30/t given 2000 sshex bends l/d rates and spot laycans (equivalent to $5-5.3k daily bss RV incl. $14-15k for ETS) ;
• Charterers offer mere $35.5/t for shipment of 5-6,000 t of wheat from POC to the Italian Adriatic with 1500 sshex bends l/d rates and late February laycans, which is equivalent to $2.4-2.7k daily bss RV;
• Other charterers are ready to pay $36/t for transportation of 8,000 t of wheat from POC to Italy with 1750x/1750x l/d rates;
• Traders offer $30/t for shipment of 6,000 t of corn from Izmail to Larnaca;
• Meanwhile, some charterers target mere $29/t for transportation of 6-7,000 t of soybeans from POC to Lebanon with 1250 sshex bends l/d rates and early March laycans, which hardly reaches even $1.7k daily in TCE bss RV;
• 6,000 t of soybeans are offered for shipment from POC to Marmara at $25/t with 1500 sshex bends l/d rates and mid-March laycans, which is equivalent to $2.9-3.2k daily bss RV.

Speaking of other cargo flows:

• A couple of 3-4,000 t lots of scrap (sf 70`) are carried from Constanta to Nemrut Bay at high $20s/t;
• The deal for shipment of 6.5-7,000 t of grain from Varna to Iskenderun has been agreed at quite strong $26.5/t, which is equivalent to $3.5-4k daily bss RV;
• Charterers target $21/t for transportation of 10,000 t of urea (sf 51`) from Poti to Constanta with 2500 sshex bends l/d rates and late February laycans, which is equivalent to $5-5.3k daily bss RV or $4.2-4.5k daily bss dely Marmara (incl. $12-13k for ETS);
• The contract for shipment of 2,000 t of minerals in bb from Poti to Constanta + Burgas is discussed at very strong low $50s/t bss 1/2, which exceeds $3.5k daily bss RV;
• Charterers are still on the market with 3,000 t of bagged fertilizers offered for transportation from Varna to Chornomorsk at $27/t given 800x/1000x l/d rates and late February laycans;
• Several 3-4,000 t lots of AN or urea in bb are offered for shipment from Poti to Galati or Giurgiulesti or Ukraine at high $30s/t;
• Slightly less than 5,000 t of steels are carried from Novorossiysk to Bartin at $19/t, which means $1.9-2.3k daily in TCE bss dely Marmara;
• Charterers target below $40/t bss FIOS for shipment of 4,700 t of steels from Novorossiysk to Haifa, while owners are seeking to get mid-high $40s/t;
• Owners command $90k bss lumpsum for transportation of 1,000 t of steel from Novo to Alexandria;
• Charterers are ready to pay 27/t for shipment of 3,000 t of coal from Kavkaz to TBS.