Small-tonnage owners suffer scant cargo offer in Black Sea

The imbalance of cargo offer and vessel list for 2H Dec dates continues in Black Sea amid slow trade. Further rate drop in the neighboring Handy segment is putting additional pressure on rates. Stabilization of delays and congestions at Sulina entrance does not contribute to the rate growth either:

• Thus, charterers offer $60/t for shipment of 3,000 t of wheat from Reni to the Marmara Sea given 6 days of waiting times and AWRP on owner’s acct, while owners are seeking to get more than $70/t;
• A 4,500 t lot of wheat is offered for transportation from Reni to the Marmara Sea at $61/t, while other charterers are ready to pay at best $61/t for shipment of 4-4,500 t of soya (sf 54`) given 7 days of waiting times and AWRP on owner’s acct (theoretically equivalent to $5-5.2k daily considering additional 8-10 days of waiting for sailing outbound on owner’s acct, but in fact should be considered as $2.6-2.8k daily plus 18-20 days of demurrage claim);
• The deal for transportation of 3,100 t of grain from Izmail or Reni to Cyprus is negotiated at low $80s/t given 5 ttl days sshex l/d rates, 7 days of waiting times and AWRP on owner’s acct;
• Shipment of 4-5,000 t of wheat from Reni to Mersin is discussed at $73/t given 6 ttl days sshex l/d rates, AWRP and 7 days of waiting times on owner’s acct;
• Charterers offer $62/t for transportation of 5,000 t of barley (sf 54`) from Reni to the Marmara Sea given 800 sshex bends l/d rates and Dec 20 onwards laycans;
• Also, brokers suggest mid-$70s/t for shipment of 6,000 t of corn from Reni to the Italian Adriatic bss 1/1 given 7-8 days of waiting times and AWRP on owner’s acct.

Grain offer for coaster fleet remains extremely limited in Ukraine’s deep-sea ports:

• 3,100 t of agri products (sf 65`) are carried from Pivdennyi to the Marmara Sea at $82/t with 1,000 sshex bends l/d rates and 12 days of waiting times on owner’s acct (equivalent to very low $60s/t bss slightly more than 4,000 t of heavy grain and is theoretically equivalent to $5.3-5.5k daily bss RV given AWRP on owner’s acct);
• Transportation of 10-12,000 t of corn from Odesa to EMed is estimated by ISM at very high $60s/t bss 1/1 given 10 days of waiting times and AWRP on owner’s acct.

As for EU grains:

• The deal for shipment of 9,000 t of meal (sf 54`) from Bulgaria to Israel with 2,500 sshex bends l/d rates and Dec 20-23 laycans has been signed at $41/t (corresponds to $36-37/t bss 10,000 t of heavy grains and is equivalent to $10k daily bss RV);
• Up to 3,200 t of wheat are carried from Varna to Pireus at $37/t (equivalent to $4.4-4.7k daily bss RV);
• Charterers offer $38/t for transportation of 3,000 t of corn from Constanta to Larnaca.

As for other cargo flows:

• Exporters are still ready to pay at best $32-33/t for shipment of 5-7,000 t of billets from Novorossiysk to the Marmara Sea;
• 2,500 t of steels are carried from Bartin to Constanta at $26/t, although charterers were initially targeting very low $20s/t;
• Owners are seeking to get at least $38/t for transportation of 3,000 t of steels from Bartin to Eleusis (equivalent to $4.7-4.9k daily bss RV);
• Charterers are ready to pay low-mid $70s/t for shipment of 1,300 t of steels from Poti to Izmail;
• 3,000 t of urea are carried from Poti to Constanta at $36/t;
• The deal for transportation of 1.6-1,700 t of coal from Kavkaz port to Bulgaria has been signed at $65/t given 1,500 sshex bends l/d rates and Dec 17-20 laycans.