Chartering market at hand: coasters and minibulkers // week 24

Despite the end of the grain season, small-tonnage owners have managed to stabilize rates in the Black and Mediterranean Seas after a slight decline in 1H June. This is primarily referred to still limited spot tonnage list caused by ongoing delays at the entrance to the Sulina Canal, as well as amid downtimes in the ports of Israel and Georgia, which knocks about 150 vessels out of the market. At the same time, freight rates ex Russian Azov and Black Sea ports have even shown an upturn amid the recovery of coal and fertilizer exports as importers, primarily from the EU, are trying to contract some cargoes before sanctions against Russia enter into force. Over the week, transportation costs from Azov Sea ports have risen by $4-6/t, those from the Black Sea by $2-4/t. The Baltic Sea coaster market remains inactive, while a rough cargo/tonnage balance allows to keep rates stable.
Note that despite a further rise in bunker prices, current freight levels allow owners to have record-high earnings as for mid-June. Current TCEs for coasters and mini-bulkers are 2-3 times higher than OPEX, which has not been seen at the end of the grain season during at least the last 15 years.
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Owners can hardly count on any rate upturns in 2H June. They will even barely manage to keep freights stable given the end of the grain season, as well amid weak demand for urea and steel products in the EU and North African countries, respectively.

Terms FIOS 1/1;
* - per m3;

Terms FIOS 1/1;
* - per m3;

Terms FIOS 1/1;

Terms FIOS 1/1;
* - per m3;

Terms FIOS 1/1.