Cargo/tonnage imbalance forces Handy/Supra owners to make further concessions in Baltic Sea
The Baltic & Continent Handysize and Supramax markets look weak. Activity has grown slightly with the return of major players after the events in Athens. However, the cargo offer looks minimal, with the shortage of cargoes being most acute in the Supramax segment. The tonnage list remains excessive in the region. This puts pressure on freight levels in the basin: rates on key routes have sagged by $1-3k daily. Note that shipments ex Russian ports still require premiums compared to other ports of the region; however, these levels have also sagged:
Rates for a 32k dwt vessel bss dely DOP ARA redel EMed are voiced by a broker at about $15k daily;
Deals for Handysize inter-Continent trips are negotiated at $13-14k daily bss dely Skaw;
The contract for a Handysize carrier bss dely Kotka redel ECSA is discussed at around $16k daily;
Transportation of 30,000 t of fertilizers from the Gulf of Finland (Russian port) to 1 Brazilian port costs low $60s/t, which is equivalent to low $20s k daily bss DOP ARAG;
Shipment of 25,000 t of urea from Finland to Dakar is negotiated at high $60s/t;
The transportation cost of a Handy lot of grain from Liepaja to Douala is voiced by charterers at $44/t, which is equivalent to mere $10k daily bss APS for an about 33k dwt carrier.
In the Supramax segment:
A 61k dwt vessel has been fixed slightly below $17k daily bss dely DOP ARA redel EMed;
The deal for a 56k dwt carrier bss dely DOP Сontinent redel EMed has been signed at $16.5k daily. Note that a broker voices an indication of $15.5k daily on this route;
Rates for a 63k dwt ship bss dely DOP ARA redel USG are voiced by the owner at about $18k daily vs. charterer’s idea of $16k daily.