Handy/Supra market still looks quiet in BlSea & Med

14.04.2023 12:53

With Easter holidays smoothly flowing into Orthodox Easter, activity remains rather limited in the Black and Mediterranean Seas. Besides, increasing tensions between Ukrainian and Russian sides at JCC negatively affect the offer of Ukrainian grains.

However, freight rates have stayed almost unchanged amid not that long list of open vessels in the area:

  • Thus, most charterers target below $10k daily for Handy vessels of 31-33k dwt bss dely passing Canakkale via CVB redel Med, although owners are seeking to get at least $12k daily;
  • Supramax inter-Med rates bss dely passing Canakkale (excl. Ukraine or Russia) are hovering at $14-15k daily.

As for long-haul trips:

  • A couple of deals for 35-37k dwt fleet bss dely EMed redel ECSA are discussed at mere $10-10.5k daily, while owners are seeking to get more than $12k daily for similar shipments towards USG;
  • The deal for usual Supramax clinker run bss dely WMed redel WAfr is negotiated at $16k daily;
  • Supramax front-haul rates for EU grain trips are hovering at $18-19k daily.

As for shipments within the Ukrainian export corridor:

  • Charterers are still ready to pay at best $21-22k daily for Supra trips to SE Asia bss dely passing Canakkale.

TCT rates via Russian ports vary significantly:

  • A couple of deals bss dely passing Canakkale via Novorossiysk redel FEast are negotiated at $20-21k daily, while another Supra carrier has been fixed above $30k daily for a quick run towards India.

Voyage-basis market looks quite silent this week, with grains remaining the only regularly shipped cargo:

  • Charterers are ready to pay $37-38/t for shipment of 27,000 t of corn from Ukraine to Iskenderun or Egypt with 1-5 May laycans, 5,000 sshex bends l/d rates, 15 days of waiting time and EWRI on owner’s acct (equivalent to $13.3-13.8k daily bss dely psg Canakkale);
  • Meanwhile, other charterers have managed to fix a vessel for transportation of 40,000 t of wheat from Kavkaz roads to Egypt below $20/t, which means less than $11k daily in TCE bss dely psg Canakkale in case of EWRI on owner’s acct;
  • The deal for shipment of a Handymax lot of corn from Ukraine to SpanMed has been signed at $39/t given EWRI and 15 days of waiting time on owners acct (equivalent to $17.5k daily in case of 5,000 sshex bends l/d rates);
  • The deal for transportation of 30,000 t of wheat from Constanta to Algeria with 8,000x/2,500x l/d rates and 1H May laycans is discussed at $24-24.25/t, which is equivalent to $13-13.5k daily bss dely psg Canakkale;
  • Charterers offer $17/t for shipment of up to 25,000 t of corn from Constanta to Bari given 5,000 sshex bends l/d rates and 1H May laycans, which is equivalent to $11-11.5k daily bss dely psg Canakkale.

As for other cargoes:

  • Charterers target below $30/t for shipment of 20-25,000 t of fertilizers from Ashdod to Huelva + Rouen with 7,000x/2,000x + 6,000x l/d rates and 20-22 April laycans;
  • Transportation of 21,000 t of urea from Marsa-el-Brega to Ravenna with 4,000x/5,000x l/d rates is estimated by ISM at $19-20/t;
  • Brokers suggest very low $40s/t for shipment of 50,000 t of urea from Tuapse to WCI;
  • 22,000 t of ore are carried from Russia to Aliaga at $19/t.