Black Sea small-tonnage market still sluggish and overtonnaged

Limited cargo offer and sharpening surplus of open vessels allow charterers to insist on a further rate decline in the Black Sea. However, ship owners so far successfully resist. Despite wider bid/offer gap, fixture levels have barely changed. Thus:

• Several 6-7,000 t lots of wheat or corn are offered for shipment from Izmail or Reni to EgyptMed at $31-33/t, while most owners are still seeking to get at least $35/t (equivalent to $2.3-2.8k daily vs. $3.1-3.4k daily bss RV in case of 3-4 days of waiting time for in + out at Sulina/Bystre for vessels with no AWRP required);
• The deal for transportation of 6,000 t of corn from Izmail to the Italian Adriatic has been signed at $35/t with 1,500x/2,000x l/d rates, which gives the TCE of $2.9-3k daily bss RV);
• Charterers offer mere high $20s/t for shipment of up to 6,500 t of wheat from Giurgiulesti to Alexandria, while owners are seeking to get low $30s/t, which is equivalent to $2.5-2.7k daily vs. $3.1-3.4k daily bss RV;
• Other charterers are ready to pay $40/t for transportation of 6,000 t of corn from Izmail to Naples, which exceeds $3.5k daily in TCE bss RV;
• The deal for shipment of 2,500 t of grain (sf 52-53`) from Reni to Cyprus has been signed at $35/t, which means $1.3-1.5k daily in TCE bss RV;
• A slightly smaller lot of barley has been fixed from Izmail to Cyprus at $35.5/t.

As for shipments from Ukraine’s deep-sea ports:

• Traders target below $30/t for transportation of 8-9,000 t of corn from Chornomorsk to EgyptMed given 3,000x/1,750x l/d rates (means up to $3.2k daily bss RV in case of $20-30k of AWRP), although last done for a slightly bigger stem was reported at low $30s/t some days ago;
• The deal for shipment of 6,000 t of wheat from Odesa to Alexandria is discussed at $34-35/t given 1,500 sshex bends l/d rates, which is equivalent to $2.8-3.1k daily bss RV in case of $15-20k of AWRP;
• 3,000 t of wheat are offered for transportation from Odesa to the Italian Adriatic at low $40s/t, while owners are seeking to get mid-$40s/t (equivalent to $1.7-1.9k daily vs. $2-2.2k daily bss RV in case of $10-15k of AWRP);
• Meanwhile, other charterers are ready to pay at best $37/t for shipment of a 3,000 t combo-lot of corn + bran from Chornomorsk to Alexandria given 1,000 sshex bends l/d rates, which hardly reaches even $1.3k daily in TCE bss RV in case of $10-15k of AWRP;
• Moreover, transportation of 3,000 t of bagged sugar from Odesa to Alexandria is negotiated at very strong $42/t.

The cargo offer from Romania and Bulgaria remains extremely low:

• The deal for shipment of 10,000 t of grain (sf up to 49`) from Varna to SpanMed has been signed at $26.5/t, which is equivalent to $3.3-3.6k daily bss RV in case of no ETS payment or to $2.9-3.2k daily incl. ETS;
• 4,000 t of grain (sf up to 49`) are carried from Bulgaria to Marmara at $16.5/t (means $2-2.3k daily in TCE bss RV);
• Charterers are ready to pay $43/t for transportation of 6,000 t of meal (sf 52`) from Varna to N.Spain given 1,500x/2,000x l/d rates, which reaches $3k daily bss dely Marmara redel WMed or ARAG;
• Slightly more than 5,500 t of agri products (sf 58`) are shipped from Constanta to Oristano at high $30s/t, which is equivalent to $3.1-3.4k daily bss RV for a 7k dwt vessel;
• The deal for transportation of 2,000 t of agri products (sf 65`) from Constanta to Marmara is negotiated at $27-28/t, which corresponds to $19-20/t bss 2,800 t of heavy grains.

Freights ex Russian, Georgian and TBS ports remain unchanged:

• Brokers still suggest $19-20/t for transportation of 5-6,000 t of steels from Novorossiysk to Marmara and high $20s/t for shipment of 3-4,000 t of aluminium from Novorossiysk to EC Greece;
• Carrying 3-4,000 t of sulfur from Poti to EgyptMed is estimated by ISM at high $20s/t, while transportation of 8-10,000 t of coal or fertilizers from Novorossiysk to Iskenderun with good l/d rates is quoted at mid-high $20s/t;
• 1,500 t of steels are carried from Eregli to Burgas at $18/t.