Chartering market at hand: coasters and minibulkers // week 25

Istanbul Shipbroker's dinner and related events have taken up the torch from Bergen and Posidonia, pulling many players out of the market. However, this fact had virtually no impact on the market picture. Despite continuing blockade of Ukraine’s largest ports, the market of the Black and Mediterranean Seas looks quite balanced, primarily due to ongoing queues at the entrance to the Sulina Canal, where more than 80 dry cargo ships got stuck waiting to be processed. Regular shipments of fertilizers and minerals ex North African and Turkish ports, as well as those of grain from the Danube , allow owners to keep rates stable.

Transportation costs ex Russian Azov Sea ports have risen another $1-2/t increase due to quite brisk demand for sea-river tonnage fueled up by lively shipments of coal.

The Baltic Sea coaster market remains extremely dull, but relevant rates hold steady due to the extremely short list of vessels staying in the region.

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Owners count on a significant increase in sea-river rates as early as July, as near-record harvest is forecasted in Russia. Also, state-controlled companies will most likely continue to steal and illegally export Ukrainian wheat from the occupied territories of the southeast. At the same time, despite a noticeable decline in Ukraine’s harvest, exports of Ukrainian barley, wheat and old crop corn via the ports of the Danube and Constanta are likely to remain at current maximum possible level. This gives owners every reason to expect at least the preservation of freight levels in the Black Sea even without exports of Ukrainian steel products and weak demand for Russian steel in the MENA countries, as well as amid the imminent ban on imports of Russian coal to the EU (Aug 10). The Mediterranean Sea market also shows no preconditions for any trade slowdown, except for the steady decline in urea prices, which raises concerns among owners. Azov Sea rates will most likely go up as no quotas or restrictions on exports of new crop Russian grain have been announced so far, while exporters forecast a noticeable upturn in wheat prices, which will only spur sea-river rates. In the short term, the Baltic Sea coaster market is likely to remain extremely slow. Owners put hopes only on brisker shipments of Ukrainian cargoes from the ports of Poland and the Baltic States; otherwise rate cuts seem inevitable.

Spot/ppt freight assessments on main trade routes ex BlSea ports

Terms FIOS 1/1;
* - per m3.

Spot/ppt freight assessments on main trade routes ex shallow Azov Sea ports

Terms FIOS 1/1;
* - per m3.

Spot/ppt freight assessments on main trade routes ex Caspian Sea and Volga ports

Terms FIOS 1/1;
* - per m3.

Spot/ppt freight assessments on main trade routes ex EMed, Adriatic Sea and WMed ports

Terms FIOS 1/1.

Spot/ppt freight assessments on main trade routes ex Baltic Sea ports

Terms FIOS 1/1;
* - per m3.

Spot/ppt freight assessments on main trade routes ex North Sea ports

Terms FIOS 1/1;
* - per m3.