Coaster owners manage to keep freights high in Mediterranean Sea

28.06.2022 17:21

The Mediterranean Sea coaster market is generally showing quite high pace of trade. Fertilizers can be called the market driver as relevant shipments are lively in all major areas. Requests for transportation of steel and minerals regularly enter the market. No major shifts in tonnage list can be reported this week as the number of open vessels is not growing further in the region. High bunker prices allow owners to hold on rates.

As for fertilizers:
The deal for transportation of 3,000 t of urea from Egypt to the Marmara Sea has been signed at low $30s/t (equivalent to $3-3.5k daily bss RV or to $5.3-5.8k daily for one laden leg);
The contract for shipment of 6,000 t of fertilizers from Egypt to Romania has been concluded at around $30/t bss 1/1, which gives the TCE of around $9-9.5k daily for one back-haul laden leg;
Up to 7,000 t of urea are carried from EgyptMed to Varna at about $27/t;
A 5,000 t lot of fertilizers has been fixed from EC Greece to Constanta at $23/t bss 1/1;
The deal for shipment of 6,000 t of sulfur from Eleusis to Ashdod has been signed at an extremely strong $45/t, which, however, exceeds $8k daily bss RV in equivalent even considering more than $60k total costs for DAs;
A 4,400 t lot of fertilizers is carried from Iskenderun to Bourgas at $34/t (equivalent to around 4k daily bss RV);
Charterers are ready to pay low-mid $40s/t for shipment of 13,000 t of urea from Arzew to Ghent.

In the steel sector:
The deal for transportation of 1,750 t of steel coils from Diliskelesi to Misurata has been concluded at high $70s/t;
A 2,000 t lot of steel coils is carried from the Marmara Sea to Casablanca at around $105/t;
The deal for transportation of 6-7,000 t of HBI from Misurata to Margera is negotiated at high $40s/t, while a 6,000 t lot has been fixed from Misurata to the Marmara Sea at about $42/t;
Brokers suggest up to $40/t for shipment of 3-4,000 t of scrap (sf 80-85`) from Ashdod to Iskenderun vs. $50-60/t a month ago; obviously, the waiting time decrease in Ashdod (down to 2-3 days) plays into charterers' hands.
Charterers offer around $50/t for transportation of 12,000 t of scrap (sf 70`) from Caronte to Damietta.

As for minerals, a 5,000 t cargo lot has been fixed from Tunisia to Constanta at $29/t, which is equivalent to $4k daily for one laden leg with minimal ballast distance;
Charterers offer mid-€40s/t for shipment of 5-10,000 t of olive stone from Sousse to Immingham;
Charterers target €22-23/t for transportation of 12-13,000 t of bentonite from Aliaga to Ravenna.