ISTFIX Black Sea & Mediterranean Freight Index Report: 2014 Week 10

by Istanbul Freight Index, ISTFIX
Wednesday March 12, 2014

Freight rates are on steady recovery track across all the regions. Although Black Sea lags behind other regions, West Mediterranean is rather strong with Central Mediterranean supporting the returns. As for Baltic, North Sea and Continent 3.000-5.000 dwt tonnage is very tight, granting owners to lay down the rules.

Starting with intra-Black Sea, a 5.000 dwt reasonably young vessel was trip chartered for 4.000 USD a day basis dlv/redlv Black Sea for a month. According to owner, the rate was reasonably at par with spot rates, which suggest good risk- free income. In another intra-Black sea shipment, 3.000 tonnes of urea was fixed from Yuzhnny to Samsun for a very good 21 USD a tonne, whereas previous fixtures were done at 17-18 USD a tonne.

Coming to longer range, 3.150 tonnes of SFM (stf 68) cargo was reportedly fixed to a 5.000 dwt unit for 47 USD a tonne from Odessa to Ravenna. The rate corresponds to about 32 USD a tonne on 1/1 stowage basis, roughly same as last week.

In the East Mediterranean, 3.250 tonne rebar fetched 28,5 USD a tonne from Nemrut to Tunisia with reasonable terms, once again reflecting last done levels.

Western Mediterranean is getting tighter as charterers that used to drag their feet towards non-boxed ladies now started accept (though rarely nowadays it might be), conventional units. On one such shipment, a 6.500 dwt unit booked 6.000 tonnes of debars from Leixoes to Tenes 21,5 EUR per tonne or nearly 29,5 USD a tonne.

Berlin based BMTI this week reported that in the Baltic, North Sea and b basin markets activity is on the rise. Fertilizers ex-St. Petersburg to Poland are getting as much as 19 EUR per tonne, corresponding to good daily earnings.

Brokers reported strong uptick in the market as 3.500 dwt units started earn in excess of 3,000 EUR daily. 3.000 tonne cargoes from Baltic to Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) region now offer low 20 EUR per tonne instead of 18-19 EUR/tonnes last week. From U.K. 6.000 tonnes of rape seeds were offered at 43 USD per tonne to Izmir.

About ISTFIX

ISTFIX is an independent research company which since 2008 concentrates on 2.000 to 10.000 dwt bulk carrier / general cargo vessels trading across Black Sea - Mediterranean waters.

Reports are compiled from information and fixture data gathered from owners, brokers and operators in the region and are presented in good faith to provide an unbiased benchmark for this coastal trade market. For more information and to sign up for the weekly ISTFIX email please visit ISTFIX.com.

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