ISTFIX Black Sea & Mediterranean Freight Index Report: 2014 Week 7

by Istanbul Freight Index, ISTFIX
Wednesday February 19, 2014

Black Sea and Mediterranean rates entered third week of relatively stagnant trend however brokers and owners were intimidated by a sudden weakening of cargo flows.

There was an obvious stalemate between charterers and owners as one side managed to defend its turf by offering lower than last done levels while the latter side resisted.

This week, 4.400 tonnes of rebar cargo from Marmara to Libya was fixed to an older tween-decker unit at 21 USD a tonne, suggesting a 1 USD per tonne decline as the owner said his last done was 22 USD per tonne for a similar shipment.

The vessel, owing to its age, remained spot for an extended period, which did not really
motivate the owner to resist longer. 

For the small coaster segment 1.100 tonnes wheat bran cargo was fixed from Bourgas to Cyprus for 47.500 USD lump sum this week.

At the beginning of the year, the owner conveyed, same cargo was shipped for 50.000 USD lump sum.

On daily basis, earnings dropped about 100 USD a day, which appears to be within seasonal expectations.

In the Western Mediterranean, 8.700 tonnes of steel coils were shipped from Fos to Marmara at about 24,5 USD a tonne with fast terms.

Owners were quite satisfied as the rate corresponded to earnings over 6.000 USD a day.

5.000 tonne cement cargoes shipped from Portugal to Algeria still hold at 24 USD a tonne levels, sustaining same levels since the beginning of the year. Western and Central Mediterranean cargo supply remains strong owing to Algerian demand.

In the Baltic, North Sea and Continent, rates now match the mood as owners are nowadays able to get better freights across the board.

German short sea brokers expect 2014 to be better overall, citing structural improvements, according to Berlin based BMTI.

This week 4.000 to 5.000 tonne generals from Irish Sea to German Baltic offered about 15,5 EUR per tonne.

Same vessels booked westward cargoes at 17-18 EUR per tonne to Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) area.

3.000 tonne cargoes from U.K. East Coast to Rotterdam were seen at 12-13 EUR per tonne or higher, while fertilizers from Tallinn to German Baltic fetched 17 EUR per tonne.

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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