Activity slackens on Black Sea coaster market, with much fewer grain offers ex Danube ports

Demand for small-tonnage vessels has inched down in the Black Sea. Brokers report much smaller number of fresh offers ex Danube ports. Many players refer this to more complicated exports, with increased inspections and delays. With a further increase in late October-early November tonnage list, freight rates have come under pressure.

Danube shipments remain the most popular ones despite a slowdown:

• Several charterers already offer up to $60/t for transportation of 6,000 t of wheat from Reni/Izmail to Alexandria, while owners are seeking to get at least $62-64/t (equivalent to $5.6-5.8k daily vs. $6-6.3k daily bss RV given 7 days of waiting times for passage in on owner’s acct and incl. 5-6 days for passage out);
• Charterers are ready to pay $68/t for shipment of 5-6,000 t of corn (sf 51-52`) from Izmail to Ravenna given 1,250 sshex bends l/d rates (equivalent to $5.5-5.9k daily bss RV);
• Traders target $58-59/t for transportation of 10,000 t of corn from Reni to SpanMed given 2,000x/2,500x l/d rates and 4-8 November laycans (equivalent to $7.3-7.7k daily bss RV);
• 11-12,000 t of agri products (sf 55`) are offered for shipment from Reni to Liverpool at mid-high $70s/t with 2,500x/5,000x l/d rates and 20-25 October laycans.

As for smaller cargo lots:

• The deal for shipment of 2,700 t of corn from Izmail to Sicily has been signed at $71/t with 1,000 sshex bends l/d rates (equivalent to $3.2-3.3k daily bss RV);
• A couple of contracts for transportation of 3-4,000 t of soybeans from Reni or Izmail to Marmara have been signed at low $50s/t (equivalent to $4-4.7k daily bss RV);
• Meanwhile, steel exporters target mere $50-51/t for shipment of 3,100 t of steel coils from Izmail to Thessaloniki, which hardly reaches even $3.5k daily in TCE bss RV.

The number of offers ex Ukrainian deep sea ports continues to grow, but freights still vary greatly:

• Charterers offer $40/t for shipment of 3,000 t of soya (sf 52-54`) from Chornomorsk to Marmara with 800 sshex bends l/d rates and spot laycans, which hardly reaches even $2.3k daily bss RV given AWRP on owner’s acct;
• Other charterers target $52-53/t for transportation of 6,000 t of corn (sf 50-51`) from Odesa to the northern Adriatic with 1,250x/2,000x l/d rates and early November laycans, which is equivalent to $3.5-4.5k daily bss RV given AWRP on owner’s acct;
• Meanwhile, some traders are ready to pay low $60s/t for shipment of 10,000 t of corn (sf 51-52`) from Odesa to EgyptMed with 2,000 sshex bends l/d rates and spot laycans, which exceeds $10k daily in TCE bss RV even in case of $130-150k of AWRP + crew bonus on owner’s acct;
• Other charterers offer $60/t for transportation of 10-12,000 t of corn (sf 49`) from Odesa to Libya with 4,000x/2,500x l/d rates, which gives the TCE of $8.5-11.5k daily bss RV given AWRP on owner’s acct.

The cargo flow from other ports of the basin (including Russian ones) remains limited, with rates ex EU ports and Turkey being under pressure:

• The deal for shipment of 4,000 t of corn from Constanta to Sicily has been signed at mere $26/t, which is equivalent to mere $1.7-2k daily bss RV;
• Meanwhile, 5,000 t of wheat are carried from Constanta to the Adriatic Sea at $29/t bss 1/1, which gives the TCE of $2.8-3k daily bss RV;
• Brokers suggest high $30s/t for transportation of 6,000 t of agri products (sf 59`) from Varna to Ravenna with 1,500x/2,000x l/d rates and 1H November laycans;
• Traders offer $30/t for shipment of 12,000 t of meal (sf 56`) from Constanta to Casablanca with 2,000x/2,500x l/d rates, which means $3.2-3.4k daily bss RV or $5.1-5.3k daily bss dely Marmara redel WMed;
• Besides, charterers are ready to pay mid-high $30s/t for transportation of 9,000 t of meal (sf 50`) from Varna to Ashdod, but owners are mostly not willing to call Israel and asking at least mid-$40s/t so far;
• The deal for shipment of 5,000 t of pig iron from Novorossiysk to Marmara has been signed at low $20s/t bss 1/1 (equivalent to $3.5-3.8k daily bss RV for vessels with no AWRP required);
• Charterers are ready to pay $28/t for transportation of 12,000 t of agri products (sf 49-50`) from Novorossiysk to Ravenna;
• Brokers suggest low-mid $20s/t for shipment of 8-10,000 t of coal from Tuapse to Iskenderun.