Chartering market at hand: coasters and minibulkers // week 26

The small-tonnage transportation market is nearing the new grain season with record-high freight rates. However, TCEs are slightly below last year's levels (after all, bunker prices were twice as low as they are now), but still they exceed all other marks seen in late June-early July over the last 15 years. According to the players, owners working in the Black and Mediterranean Seas manage to keep freight rates at such a comfortable level primarily due to still brisk grain exports from the Danube ports, which attract many vessels, especially given the continuing growth of queues (idle time at the Sulina Canal already reaches 20 days). Moreover, tonnage demand is supported by regular shipments of fertilizers, minerals and steel products from Turkey and North Africa. Spot rates hold steady. Meanwhile, the Azov sea-river market has started to cool down again after a surge in shipments of Russian coal. Over the week, freight rates have sagged by $1.5-2.5/t in the region.
Only grain shipments stay relatively regular on the Baltic Sea coaster market, while offers of other cargoes are very few. However, owners also continue to show low interest in operating from the Baltic ports, which helps to keep freight rates stable. Meanwhile, the cargo flow is gradually decreasing in the Continent. Charterers hope to cut rates in the area, but so far owners make concessions only discussing shipments with a chance to transfer tonnage to a more attractive region (for example, to the Mediterranean Sea).
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The prospects for market development look ambiguous in the Black and Mediterranean Seas. Closer to mid-July, the market often shows an increase due to an upturn in shipments of new crop grains (barley and wheat), but this time the situation may be different. Firstly, exports of Ukrainian grain will definitely not grow with the start of the new season as the Danube ports and Constanta already operate at maximum capacity. Note that deals for transportation of Ukrainian grain in 2H July are now discussed even below spot freight levels. The increase in Russian grain traffic will most likely affect only a certain list of ships working with Russian business, and will have only an indirect impact on the entire BlSea & Med market. Moreover, ISM notes gradually increasing number of vessels opening in the Mediterranean Sea in 1H July, which casts doubt on the future rate growth. Weak demand for Turkish steel products in MENA and Europe, as well as the approaching Eid al-Adha holiday in Muslim countries, does not spur the market growth. In the Baltic Sea, the already low cargo traffic will most likely continue to decline given the entry into force of a number of sanctions against Russian companies in July.

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.