Black Sea coaster sector remains under pressure amid extremely slow cargo traffic

The Black Sea small-tonnage market still cannot reach its bottom. With even slower cargo offer, competition among ship owners keeps growing, which puts further pressure on freight rates.

Grain shipments from the Danube ports have slowed down, although still remain the most popular cargo flow in the region:

• Several deals for shipments of 5-6,000 t of wheat from Ukrainian Danube ports to Marmara are discussed at $28-29/t, which means $1.7-2k daily bss RV given AWRP and 7 days of waiting time on owner’s acct;
• The deal for transportation of 3,000 t of wheat from Reni to Marmara has been signed at $29/t, which is equivalent to $1-1.1k daily bss RV given AWRP and 5 days of waiting time on owner’s acct;
• Charterers already target below $40/t for shipment of 6,000 t of wheat from Ukrainian Danube ports to Alexandria, which is equivalent to less than $2.3k daily bss RV given AWRP and 7 days of waiting time on owner’s acct;
• 7,000 t of wheat are carried from Izmail or Reni to Ashdod at $40/t;
• Meanwhile, some traders have reportedly succeeded to fix a vessel for transportation of up to 7,000 t of wheat from Reni to Mersin at mere $36/t, which hardly reaches even $2k daily bss RV for an 8k dwcc carrier.

As for westward destinations for Ukrainian grain:

• Charterers are ready to pay low $40s/t for shipment of 6,000 t of corn from Izmail to Bari with 1,500 sshex bends l/d rates and mid-June laycans, which gives the TCE of $2.8-3k daily bss RV;
• 6,000 t of corn are carried from Reni to Ravenna at $45/t (equivalent to $2.5-2.7k daily bss RV);
• The deal for transportation of 8,000 t of barley from Ukrainian Danube ports to Tunisia has been signed at low-mid $40s/t, which is equivalent to $2.7-2.9k daily bss RV.

Shipments from other ports remain sporadic, with rates further down. Thus:

• The deal for transportation of 3-4,000 t of wheat from Varna to Marmara is discussed at $15-15.5/t, which is equivalent to $1.5-1.8k daily bss RV;
• 12,000 t of wheat are carried from Constanta to Alexandria at $18/t, while 10,000 t of the cargo are shipped to Israel at $19/t (both rates hardly reach even $3k daily in TCE bss RV);
• Brokers suggest $24/t for transportation of 5-6,000 t of wheat from Constanta to Mersin and $26-27/t to the Adriatic Sea bss 1/1;
• Grain traders are ready to pay low $30s/t for shipment of 5-5,500 t of wheat from Novorossiysk to EMed bss 1/1 with 2,000 sshex bends l/d rates;
• The deal for transportation of 5,000 t of steel from Novorossiysk to Marmara is discussed at $19/t (equivalent to $2.9-3k daily bss RV for vessels with no AWRP required and well below $1.5k daily with AWRP on owner’s acct);
• 3,000 t of coal are offered for shipment from Kavkaz to Iskenderun at $40/t;
• Charterers are ready to pay $44/t for transportation of 3,800 t of coal from Samsun to Gijon, which is equivalent to $1.2-1.4k daily bss RV or $2.3-2.7k daily bss dely Samsun redel ARA or WMed;
• Brokers suggest low $20s/t for shipment of 3-4,000 t of steel from Bartin to Eleusis;
• Charterers target $25/t for transportation of 3,000 t of bagged urea from Poti to Izmail with 1,000 sshex bends l/d rates, AWRP and 5 days of waiting time on owner’s acct.