Coaster sector looking a bit softer in Mediterranean Sea

07.07.2022 11:54

The cargo traffic has slowed down somewhat in the Mediterranean Sea this week, which is partly referred to the upcoming holidays in Muslim countries. However, owners do not hurry to make concessions and try to keep rates stable. "There are still plenty of spot cargo offers to choose from," an owner of a 5k dwcc carrier commented to ISM.
Brokers report slightly smaller offer of minerals and fertilizers, while steel shipments (despite negative developments on Turkish metallurgical market) remain quite regular and enjoy demand on long-haul routes, namely towards Baltic/Continent/UK ports. Owners voice quite aggressive ideas for such voyages, seeing no prospects in repositioning to North Europe. Thus:
The deal for transportation of 6,000 t of steel rebars from Egypt to the UK has been signed at around $90/t bss 1/1 (equivalent to $10k daily bss dely Iskenderun redel Continent);
The contract for shipment of 10,000 t of steel from Thessaloniki to Klaipeda has been concluded at about $91.5/t;
A 6,000 t lot of WRIC has been fixed from Thessaloniki to ARA ports at $85/t;
Brokers suggest low-mid €80s/t for transportation of 6,650 t of steels from Ravenna to Gdynia with mid-July laycans and l/d rates of 1,300c/2,000c;
Besides, charterers target high $30s/t for shipment of 3,000 t of steels from Catania to Larnaca.

As for fertilizers:
The deal for shipment of 8,000 t of urea from Damietta to Bourgas is negotiated around low $30s/t with 2H July laycans and l/d rates of 3,000x/2,500x (which gives the TCE of very strong $12k daily for one back-haul laden leg);
The deal for transportation of 5,000 t of rock hosphate from Egypt to the southern Adriatic has been signed at very low $40s/t, which is equivalent to overwhelmingly strong $12-13k daily given minimum ballast leg included (bss dely DOP Egypt redel Italy);
Charterers are ready to pay mid-$40s/t for shipment of 15,000 t of urea from Arzew to La Pallice + Ghent.

As for minerals and other cargoes:
Charterers offer $17/t for transportation of 5,000 t of silica sand from Egypt to Nemrut Bay with l/d rates of 2,000x/2,000x and closer to $17/t for a similar stem with l/d rates of 3,000x/2,000x;
Other charterers target below €50/t for shipment of 7,000 t of marble chips in bulk from the Marmara Sea to Antwerp with quick l/d rates of 5,000c/7,000c;
The deal for shipment of 3,000 t of minerals from Marmara to Izmail is negotiated at low-mid $50s/t;

Off the WMed, brokers suggest $29/t for transportation of 8-10,000 t of silica sand from Sousse to Derince with mid-July laycans and l/d rates of 3,000x/4,000x;
A 15,000 t lot of clinker has been fixed from Mostaganem to Naples at $29/t;
Charterers offer €20/t for shipment of 10-15,000 t of salt from Barcelona to Manfredonia.