Spot Azov Sea market back to softening mode due to decreased coal exports
The Azov sea-river market has started to soften again after the recent upturn. Brokers report a significant decline in coal offer and still very limited grain exports for spot dates. Freight rates are coming under pressure:
Thus, sporadic grain lots of 3-5,000 t are offered for transportation from Rostov/Azov to the Marmara Sea at $40-42/t with early July laycans, while most owners are ready to fix at $43-45/ (equivalent to 3.2-3.4k daily vs. 3.6-3.8k daily bss RV for vessels with no AWRP required);
Up to 3,000 t of grain are carried from Azov to Mersin at low $60s/t (equivalent to $3.8k daily bss RV for vessels with no AWRP required).
There is still a lack of fresh forward offers of new crop grain, although some charterers try to test the market, receiving owners’ ideas of $50-60/t for shipment of 3-5,000 t of grain to the Marmara Sea and mid-$20s/t to Kavkaz roads.
Rates for coal shipments differ greatly, with plenty of speculations around. Owners try to keep rates table:
Some owners claim to have got mid-high $50s/t for transportation of 3,000 t of coal from Rostov to Bulgaria, while some charterers ensure they have succeeded to fix a vessel slightly above $50/t on the same route;
Other charterers inform ISM that they have a couple of vessels in hands fixed at $54-55/t for shipments from Azov/Rostov to Bulgaria;
Owners are seeking to get as much as $45-46/t for shipment of 3,000 t of coal from Taganrog to TBS (which exceeds $7k daily in TCE bss dely Marmara for vessels with no AWRP required or $5k even with AWRP on owner's acct), while charterers logically target well below $40/t given 1,500 shinc bends l/d rates;
The deal for transportation of 3,000 t of coal ex Rostov to Iskenderun with 1500 sshex bends l/d rates is discussed at $62-63/t.