Brisk inflow of cargoes inspires Handysize/Supramax owners aggressively insist on higher rates from Black Sea

Positive sentiment persists in both Handy and Supra segments of the Black and Mediterranean Seas. Demand for open tonnage keeps rising thanks to more fresh offers, especially those of grains and fertilizers for September/October dates. With still shortening list of open vessels, ship owners succeed in getting higher rates:

• Several TCT deals for 32-34k dwt vessels bss dely passing Canakkale via CVB redel Med are discussed at $12.5-13k daily, while most owners are already seeking to get more than $15k daily;
• Owners of 37k dwt fleet claim they are able to get $14k daily on inter-Med routes bss dely passing Canakkale via CVB without any hesitation from charterers;
• Moreover, a 34k dwt carrier has been reportedly chartered at very strong $14k daily bss DOP dely Otranto via CVB redel Continent;
• Charterers are ready to pay up to $10k daily for 28-29k dwt ships bss dely passing Canakkale redel EMed via CVB and up to $12k daily via Russia;
• Meanwhile, a slightly smaller vessel was chartered at mere $9.3k daily bss dely passing Canakkale via CVB redel SpanMed, but this was done early in the week.

As for other destinations:

• The deal for a 34k dwt carrier bss dely EMed redel USEC has been signed at $14.5k daily;
• A 27k dwt ship has been chartered at $12.5k daily bss APS dely BlSea redel SAfr;
• A couple of deals for Ultramax vessels bss dely WMed redel WAfr are discussed at $15-15.5k daily;
• Owners of 57-58k dwt fleet are already seeking to get well more than $20k daily for front-haul trips bss dely passing Canakkale via CVB, while charterers are not ready to pay more than $19.5k daily so far.

The voyage-basis market is seeing quite a lot of fresh grain requests, including those from Turkey:

• Large grain traders target $18-18.5/t for shipment of 30,000 t of wheat from Constanta to SpanMed with 8,000 sshex bends l/d rates and 20-25 September laycans, while owners are already seeking to get more than $19/t (equivalent to $12.8-13.2k daily bss dely psg Canakakle vs. $14k daily+);
• The deal for transportation of 30,000 t of wheat from Constanta to Algeria with 8,000x/2,500x l/d rates and late September laycans is discussed at mid-$20s/t (equivalent to $13-14k daily bss dely psg Canakkale);
• Besides, brokers suggest low-mid $20s/t for shipment of 30,000 t of wheat from Constanta to Brake with 8,000c/10,000x l/d rates and mid-September laycans;
• Meanwhile, charterers are ready to pay $35/t for transportation of 20,000 t of agri products (sf 51-52`) from Constanta to SpanMed with 3,000 sshex bends l/d rates, which exceeds $14k daily in TCE bss dely psg Canakkale;
• Early in the week, some traders were offering $25/t for shipment of 25-30,000 t of wheat from Romania or Bulgaria to S.Spain + Portugal bss 1/3 given 7,000x/6,000x l/d rates, which was equivalent to mere $11.5k daily even in case of 30,000 t lot and a 32-33k dwt vessel, accordingly;
• 30,000 t of barley (sf 52`) are carried from Constanta to S.Spain at $18.5/t with 8,000x/6,000x l/d rates (equivalent to $11-11.5k daily bss dely psg Canakkale);
• Also earlier this week, traders were ready to pay $23/t for spot shipment of 25,000 t of wheat from Iskenderun to Tunisia with 5,000x/2,000x l/d rates, which was equivalent to $10.7-11k daily bss DOP dely EMed;
• Meanwhile, carrying a larger wheat stem of 27-28,000 t from Iskenderun to Tunisia with higher l/d rates (7,000x/2,250x), but with 2H Sep laycans is already indicatively quoted by owners at low-mid $20s/t;
• The deal for shipment of 30-35,000 t of wheat from Mersin + Iskenderun to Algeria is discussed at $24-25/t given 7,000x/2,500x l/d rates, which gives the TCE of $13.5-14.5k daily bss dely DOP EMed.

As for long-haul grain shipments:

• Charterers target $30/t for transportation of 30,000 t of wheat from Taman to Santos + Rio de Janeiro given 8,000x/4,000c + 8,000c l/d rates and 2H September laycans, which hardly reaches even $10k daily in TCE bss dely psg Canakkale even for vessels with no EWRI required and Russian bunkering to be accepted;
• Brokers suggest low-mid $50s/t for shipment of 30,000 t of wheat from Novorossiysk to South Africa bss 1/1, which exceeds $18k daily bss dely psg Canakkale even with EWRI on owner’s acct;
• Meanwhile, other charterers offer mere $33-34/t for transportation of 30,000 t of wheat from Kavkaz roads to Walvis Bay given 6,000x/4,000x l/d rates, which hardly reaches even $11k daily for vessels with no EWRI required;
• Charterers offer $43/t for shipment of 30,000 t of wheat from Constanta to Colombo with 8,000x/4,500x l/d rates and spot laycans, which means $17-17.3k daily bss dely psg Canakkale;
• The deal for transportation of 30-35,000 t of wheat from TurkMed to Iran is discussed at low-mid $30s/t bss 1/1, which is equivalent to $15.5-16k daily bss DOP dely EMed;
• Brokers suggest low-mid $40s/t for shipment of 50-55,000 t of wheat from Romania to S.Korea bss 1/1 and $17-18/t for transportation of 50,000 t of corn to SpanMed.

Apart from grain, the offer of fertilizers and minerals looks brisker:

• Charterers offer low $20s/t for shipment of 33-38,000 t of phosphates from EgyptMed to Itaqui with 6,000x/4,000c l/d rates and late September laycans, while most owners are seeking to get at least high $20s/t (equivalent to mere $7-7.3k daily vs. $10-11k daily bss dely DOP EMed);
• Meanwhile, the deal for transportation of 30,000 t of rock phosphates from Annaba to Upriver bss 1/2 is discussed at high $40s/t given 7,000x/3,500x l/d rates and 20-25 September laycans;
• Carrying 30,000 t of fertilizers from Damietta to Selaata is estimated by ISM at $14.5-15/t bss 1/1 with 6,000x/3,000c l/d rates and 15-19 September laycans;
• The deal for shipment of 27,000 t of fertilizers from Ashdod to Santarem is negotiated at mid-$30s/t given 7,000x/3,500x l/d rates.

As for other cargoes:

• Brokers suggest low $20s/t for transportation of 21,000 t of steels (WRIC + billets) from Novorossiysk to Damietta with cqd bends l/d rates;
• Charterers offer high $30s/t for shipment of 40,000 t of pig iron from Novorossiysk to Paradip with 8,000 shinc bends l/d rates bss free DA in the discharge port, while owners are seeking to get closer to $50/t, which reaches $30k daily bss dely psg Canakkale with EWRI on owner’s acct.